HOUSE PASSES DEBT LIMIT INCREASE, SENATE TO VOTE AT NOON TUESDAY

Giffords House FloorRep. Gabby Giffords (D-AZ) votes on the House floor Monday night.

The House of Representatives passed a bill to raise the debt limit and lower the deficit Monday night by a margin of 269-161.The bill will cut $917 billion from the federal deficit immediately through discretionary spending caps. Additionally, it authorizes the creation of a bipartisan fiscal committee which will report an additional $1.5 trillion in deficit cuts by November 23.

If the “Super Committee’s” recommendations are not acted on by Congress by the end of the year, mandatory spending cuts will take effect across the federal budget.

The bill also calls on Congress to vote on a balanced budget amendment to the Constitution — which is certain to fail to reach the required two-thirds majority in both chambers. 

The Senate will take up the same bill tomorrow at noon, where it is expected to pass.

We’ll bring you live coverage of the votes and vote-wrangling here.  

8:46pm | The House will adjourn tomorrow for August recess.
No votes are expected until September 7th. In the meantime, 4,000 FAA workers remain furloughed and hundreds of construction projects are halted. Congress also failed to act on several job creation bills pushed by both parties.

7:42pm | How everyone voted on the debt limit increase.
The vote tally

7:41pm | Giffords statement.
From her office:

“I had to be here for this vote,” she said. “I could not take the chance that my absence could crash our economy.”

7:37pm | DeMint won’t target GOP yes votes.
 

According to POLITICO, tea party Sen. Jim DeMint (R-SC) says he will not target GOP yes votes on raising the debt limit with primary challenges.

7:35pm | The House will be in session tomorrow. Will gavel in at 10am.

7:34pm | Nancy Pelosi on Rep. Gifford’s return.
“It was one of the most thrilling moments for all of us to see this real heroine return to the House.”

7:24pm | Senate will vote tomorrow at noon tomorrow. 60 vote threshold for passage.

7:10pm | Rep. Gabby Giffords, the victim of an assassination attempt in January, is back on the House floor, waving and smiling to colleagues.
She voted in favour of the increase.

7:08pm | The Final Tally:
Republicans: 174-66

Democrats: 195-95

Total: 269-161

7:07pm | The Senate is expected to vote on raising the debt limit tomorrow.

7:05pm | The House has reached the required majority to pass the debt limit increase.

7:03pm | Resounding applause for Gabby Giffords as she enters the House chamber.

6:59pm | 6:00 remaining:
Republicans: 148-50

Democrats: 19-52

Total: 167-102

6:57pm | GABBY GIFFORDS BACK FOR HOUSE DEBT LIMIT VOTE.
 

She voted yes.

6:56pm | Democrats are withholding their votes until enough Republicans vote for the bill.

6:54pm | With 10:30 left:
Republicans: 137-44

Democrats: 15-42

Total: 151-85

6:52pm | With 13:00 left:
Republicans: 118-78

Democrats: 11-32

Total: 129-70

6:51pm | The House has started voting on final passage of a bill to raise the debt limit and cut the deficit.

6:40pm | Geithner Debt Ceiling pep rally.
From POLITICO: 

Treasury Secretary Timothy Geithner called together top officials from U.S. business groups Monday for a last minute rally to get the debt ceiling bill passed.

An executive familiar with the meeting described it as “rah rah for getting the debt ceiling done.”

6:33pm | Last minute holdup?
Cox Radio’s Jamie Dupree tweets: One member of the House Republican Whip team tells me they are “close” to having enough votes for approval

6:29pm | Call of the House.
The House is calling members to the floor. The vote will begin in about 12 minutes.

6:28pm | White House statement on the debt deal legislation:
The Administration strongly supports enactment of the Budget Control Act of 2011.  It is imperative that the United States not default on the Nation’s obligations, that the full faith and credit of the United States be preserved, and that the Nation’s fiscal house be put in order.  The bill would increase the debt ceiling to a level that will be sufficient for the Nation to meet its obligations through the beginning of 2013, while providing both a significant down payment on deficit reduction and a means to reduce the deficit further through a balanced approach that allows both for cutting spending and for addressing revenues by eliminating tax subsidies or through comprehensive tax reform.  If the bill were presented to the President, he would sign it.

6:25pm | Rep. Paul Ryan (R-WI) will be the representative person to speak on the bill before the vote:
“Both parties got us into this mess. Both parties will have to work together to get us out of it.”

6:24pm | Rep. Hensarling on the floor:
The Chairman of the Republican Conference: The American people aren’t looking for a balanced approach, they’re looking for a balanced budget.

6:22pm | The margin on this vote may well be bigger than expected.
As many as 300 representatives may back the bill — especially after Pelosi’s wee-received speech. (She got a round of applause from the Democratic side of the aisle.)

6:10pm | Pelosi speaking now.
Pelosi: “We have come here to make the future better for future generations. That is what our founding fathers visualized for America.”

Pelosi: “It is hard to believe we are putting our best foot forward with the legislation that comes before us today.”

Pelosi: “I’m not happy with it, but am proud of some of the accomplishments contained in it.”

Pelosi says this delay has led to uncertainty that has impacted American families

Pelosi: “I urge my colleagues to think of seniors” and support the bill

5:47pm | House will adjourn for August recess after the debt vote.
The House will adjourn for it’s five week August recess after tonight’s debt vote, meaning the partial FAA shutdown will continue. 4,000 employees will remained furloughed, and hundreds of construction projects will remain unfunded until Congress returns in September.

5:34pm | House Minority Whip Steny Hoyer will back the debt deal.
“I am voting for this bill. Not because I like this bill.”

“We’re here because we missed an opportunity to pass a truly balanced bill.”

Hoyer: “We need to vote not as Republicans or Democrats — but as Americans.”

5:30pm | With the support of the House Minority Leader Nancy Pelosi, it appears that tonight’s vote will pass by a substantial margin.
Most Democrats will likely vote against the bill, but most Republicans appear to be ready to support it.

5:02pm | Compromise plan passes procedural vote. Final vote scheduled for about 6:30pm.

4:38pm | Sen. Minority Leader Mitch McConnell tells CNBC that the Senate will vote on the debt deal tomorrow.

4:34pm | Obama willing to invoke 14th amendment if all else failed.
Rep. Peter DeFazio (D-OR) tells The Huffington Post that Biden told House Democrats, that if all else had failed, Obama was willing to invoke the 14th

4:33pm | Biden tells Democrats tea partiers are like ‘terrorists.’
POLITICO report here

 4:32pm | House voting on rule for the debt deal. Final vote around 7pm.

4:25pm | House Speaker Nancy Pelosi tells ABC’s Diane Sawyer that she “is “absolutely voting for” the debt deal.
She said it probably is a satan sandwich “with satan fries on the side,” but she’s voting for it.

4:16pm | House progressives oppose debt deal.
At a Capitol Hill press conference the House Progressive Caucus said most will vote against the bill today.

3:59pm | Bowles & Simpson weigh in.
“In order to produce a plan that is big and bold enough to address the problem the committee will have to go above and beyond the minimum goals prescribed for it by tackling all parts of the budget. The committee should produce recommendations that make social security permanently solvent, slow the growth of health care spending, and enact pro-growth tax reform which would clean up the code and make the system more efficient while also reducing the deficit.”

Read the full statement here:

 

3:39pm | Boehner press conference:
Boehner says the current deal meets the GOP “standards” to raise the debt limit.

Cantor trumpets the lack of tax hikes in the bill

Cantor says “the big win for us and the American people is that there are no tax hikes in this bill”

Rep. Paul Ryan claims victory for House Republicans.

Ryan predicts “a majority of Republicans will support this”

Boehner says “all leaders have the responsibility to bring the sufficient number of votes”

Boehner on the Super Committee: “We have not made any decisions, but I’m sure that we’ll continue to have conversations about our appointees to the committee.”

Boehner: “I’ve got a big job to do here. Those running for president have their own aspirations.”

 

3:24pm | Boehner tells ABC News he has the votes:
“Speaker Boehner tells Diane Sawyer he’s got the votes…”

The quote, via @RickKlein: “We got there – but we’ve got to get the bill passed. And I think we will.”

3:22pm | Protesters in the House gallery.
They apparently chanted: “Boehner, get off it, it’s time to tax corporate profits”

Another one: “Hey, Boehner Get A Clue, It’s About Revenue”

3:16pm | Democratic leadership aide to reporters: ‘We are not whipping, we are doing a leadership survey to see where members are.’

3:08pm | House Republican tells CNBC’s John Harwood:
House GOPer: “we’ll do at least 180 (votes) and could easily be at 200+. very easy whip. neither tension nor drama.” expects lopsided vote

2:53pm | Opposition mounting?
The Congressional Progressive Caucus will hold a 4pm news conference on the debt deal. Yesterday, Chairman Rep. Raúl Grijalva put out a scathing critique of the bill.

2:50pm | Report: Pelosi tells Democrats to “vote your conscience”
Read The Wall Street Journal Report Here

Pelosi needs to bring at least 60-70 Democrats on board for this bill to have a chance of passing.

2:38pm | Rep. Darrell Issa (R-CA) tells reporters the debt deal will pass the House with more than 300 votes.

2:30pm | Biden speaks.
Biden: “We have to get [the debt ceiling] out of the way to get back to growing the economy.”

Biden repeatedly used the phrase “if it passes.” But he said “I feel confident that this will pass.”

Biden: “This bargain does not prevent us from being able to continue to fund those initiatives within our budget that are the job creators.”

 

2:26pm | Pelosi tells reporters: “”The Vice President was quite magnificent” in the Democratic caucus meeting.
She still has not publicly endorsed the debt deal.

Asked if it can it pass, she replied: “You have to ask the Speaker. He has the majority.”

2:21pm | House Armed Services Committee members to meet with Boehner at 2:30pm to discuss potential defence cuts included in debt deal.

2:19pm | Boehner to reporters after the GOP caucus meeting: “I’m doing great!”
Note last Thursday (the day his plan nearly failed a House vote) he said he was having a “Zippitydoodah-day.”

2:16pm | The House Democratic press conference has been canceled, and the GOP one has been postponed.
Both House caucus meetings ran overtime as both Speaker of the House John Boehner and House Minority Leader Nancy Pelosi seek to build support for the debt deal.

Cantor Spokesman Brad Dayspring says the GOP delay is do to House votes, but there are reports that the leaders are having difficulty getting the required 216 votes.

1:53pm | House Rules committee allows for one hour of debate on debt deal.
Vote still not scheduled.

 

1:44pm | Cantor pushes back on revenue.
Spokesman Brian Patrick e-mails: 

“At a press conference this afternoon, Senator Reid claimed that Leader Cantor said revenue could be a part of the joint committee. Nothing could be further from the truth. As Leader Cantor has said since the beginning of this debate, House Republicans will not agree to tax increases. Period. Senator Reid’s claim is absolutely FALSE.”

1:41pm | Bernie Sanders tell National Journal he won’t try to block/delay the Senate vote.
 

Sen. Mike Lee (R-UT) tweets: “I intend to thoroughly understand the bill before I vote.”

1:20pm | Rules Committee sets debt deal for House vote today.
From spokeswoman Jo Maney: Rules has passed the rule providing for consideration of the updated Budget Control Act by voice vote. Floor action expected by afternoon.

 

1:07pm | Reid says House will vote tonight, Senate will try to vote tonight as well.
“We hope to get the bill from the House tonight… I’m hopeful we can get this leg done very quickly.”

Reid asked if we need more comprehensive deficit reduction: “The answer is not only yes, but HELL YES.”

Reid: “I never count my votes until they’re cast”

1:02pm | More yes votes.
Support for the debt limit bill is building in both houses of Congress 

The Hill is keeping a running “whip count” of how members of congress say they will vote.

1:01pm | Boehner’s sigh of relief.
Video from NBC News:

Visit msnbc.com for breaking news, world news, and news about the economy

12:56pm | McCain tells reporters: the President was the biggest loser in this debt deal because he was a bystander and the negotiations were concluded by leaders of Congress.
 

He said he is a firm yes vote on the deal.

12:53pm | MSNBC is reporting the House will gavel out of session as soon as it passes the debt deal, and begin its August recess.
That would mean the FAA partial shutdown will continue — and in the remote chance that if changes need to be made to the bill once it reaches the Senate, the House will not be nearby.

12:48pm | The debt deal in one flowchart.
From Senate Republicans via Ezra Klein 

Debt ceiling flowchart

12:46pm | Krugman: What Would I Have Done?
He’s not happy with President Obama or Congress. Here’s what he’d have done.

12:28pm | Senate Minority Leader Mitch McConnell tells Bloomberg he is “very optimistic” deal will pass.

12:25pm | Reuters: House Democratic Leader Nancy Pelosi says she’s undecided on debt limit bill, cites concerns about lack of new revenues.

12:24pm | More from Press Secretary Jay Carney:
He claims Medicare recipients won’t be hurt – although triggers could cut payments to Medicare providers.

Carney: “We will not have a situation where people will hold the economy hostage” by failing to raise debt limit — “at least until 2013”

12:21pm | Sen. Rand Paul (R-KY) tells Roll Call he wont hold up bill full the 30 hours, but that he wants time to read the bill, and a 60 vote threshold.

12:18pm | House Rules Committee to meet at 1:10PM.
Key step to moving debt deal to the House floor today.

12:17pm | Obama campaign video to supporters defending debt deal:

12:15pm | DeMint tells POLITICO “I will not filibuster.”

11:54am | White House press briefing:
White House Press Secretary Jay Carney: “You may notice that the cloud of uncertainty is lifting up off our economy — or almost”

Carney says Biden will tell Democrats that the deal “is a victory for the American people.”

He highlights that it protects things like Pell Grants.

Carney is pushing for a “balanced” agreement to be reached by the “Super Committee.” He says the White House is confident such an agreement could be reached — because of how close the White House and Speaker of the House John Boehner were to reaching a deal to raise the debt limit including revenues.

Carney defends the triggers, saying they are supposed to be painful to both sides: “The legislation has an enforcement mechanism, a trigger to create huge incentives for congress not to pull them.” “It is equally onerous for both sides, forces committee to come to agreements that bear fruit.”

Carney: “We unnecessarily sent a message across the country and across the globe that America might default on its obligations.”

Carney says Obama will “push very strongly” for extending the payroll tax holiday.

Carney says the deal is a signal to the financial markets that Washington is “getting its act together.”

White House refuses to say how it expects the credit rating agencies to react to the deal.

Asked where the revenues are, Carney replied: “We couldn’t get that done.” 

Carney says that “done well, done wisely” deficit reduction can help the economy

11:51am | We are awaiting the White House briefing now.

11:45am | Chamber of Commerce backs debt compromise.
Read their statement in support of the plan here.

11:39am | DeMint threatens primary challenges.
The Hill reports that tea party Sen. Jim DeMint (R-SC) has threatened moderate Sens. Olympia Snowe (R-ME), Dick Lugar (R-IA), and Orrin Hatch (R-UT) with primary challenges if they back the compromise debt plan. Lugar and Hatch face serious tea party challengers.

11:36am | POLITICO’s Jake Sherman tweets:
“House will move first on the debt ceiling bill this evening or tonight.”

Update: Business Insider has now confirmed this independently with a GOP aide.

11:32am | Biden and House Democrats to speak at 1PM.

11:24am | Full CBO ‘score’ posted.
Read it here

According to the non-partisan Congressional Budget Office, the compromise plan will cut “at least $2.1 trillion” from the federal deficit over 10 years, while raising the debt limit between $2.1 trillion and $2.4 trillion.

At least $21 billion would be cut from the fiscal year 2012 budget under the plan.

11:23am | Boehner to address press at 1:30 pm et after House GOP Conference meeting..

11:20am | CBO score of Boehner bill.
Boehner spokesman Kevin Smith tweets: “CBO score of final agreement confirms spending cuts ($917B) greater than the debt hike ($900B); $21B in cuts 1st yr”

It’s worth noting these “cuts” come from agreements to cap spending over the next 10 years — not specific plans to reduce expenditures.

We’re still waiting for the final CBO report.

11:15am | Biden: “I’m going to tell [Democrats] it’s a great day.

11:02am | Lindsey Graham a ‘no.
The South Carolina Senator is up for reelection next year and tweets that he “cannot in good conscience support this deal.”

10:56am | Heritage Action for America will “key-vote” the debt limit deal.
The conservative group is opposing the bill and will count support for the bill against members of Congress in their official vote records.

Their statement here:

10:37am | Reid says debt deal vote will occur “hopefully during today’s session.
Reid says deal is sign that Washington is not broken. He adds the Founding Fathers designed legislature setting up conflict.

“I’m not proud of the conflict we’ve had these past many months, but I’m satisfied we reached an agreement.”

Reid: Deal “remarkable.” “This is a great stride forward.” Shows what we can achieve “not in spite of divided gov’t but because of it”

10:35am | Sperling thinks Krugman is wrong.
Economist Paul Krugman accused President Obama of “surrendering” on the debt deal in this morning’s The New York Times.

 Chairman of the National Economic Council Gene Sperling replied on CBB earlier saying:

“Well, that’s wrong, and wrong, and then, I think, wrong. It was the president who stood firm, who didn’t blink on that, and in the end, we have a deal that takes that threat of default off of our political system, off of our economy, into 2013.”

10:25am | Romney’s opposition makes it harder to get GOP votes.
House Republicans need every vote they can get to make sure this deal passes. The opposition from Romney — largely considered a fiscal moderate and the party’s front runner to unseat President Barack Obama — makes that job MUCH harder.

10:22am | Romney opposes debt deal.
Here’s the full Romney statement opposing the debt deal:

“As president, my plan would have produced a budget that was cut, capped and balanced – not one that opens the door to higher taxes and puts defence cuts on the table. President Obama’s leadership failure has pushed the economy to the brink at the eleventh hour and 59th minute. While I appreciate the extraordinarily difficult situation President Obama’s lack of leadership has placed Republican Members of Congress in, I personally cannot support this deal.”

10:08am | THE TRUTH ABOUT THE DEBT DEAL: It’s Pretty Much Meaningless

9:40am | Where’s Mitt Romney?
The GOP candidate is taking flak from The Daily Caller for staying silent during the debt limit negotiations.

The even put his face on a milk carton.

Read their criticism here

9:36am | Selling it to the caucuses.
House Republicans will meet at 12:30pm and Democrats at noon to discuss the debt deal.

Senate Republicans will meet at 10am, and Democrats at 11am to do the same.

Vice President Joe Biden will attend both Democratic meetings.

9:11am | House Minority Whip Steny Hoyer tells NBC’s Chuck Todd: “I’m not promising [any votes] until our caucus meets.”.

9:08am | Rep. Robert Andrews (D-N.J.) tells Roll Call he predicts House passage tonight or before markets open tomorrow.

8:59am | What The 2012 Presidential Candidates Think About The Debt Deal.

8:52am | Democratic Whip Steny Hoyer on Bloomberg.
Republicans going to have to offer a “very substantial number of votes… well over a majority of their people” to get it passed.

8:39am | Senate and House votes expected today.
The Senate will convene at 10:30 and the House will convent at 10:00 am.

Both will hold Democratic and Republican caucus meetings before scheduling debate and votes, though it is expected that the Senate will vote first, followed by the House.

8:21am | Disapproval.
The bill uses the McConnell “disapproval” method to raise the debt limit — where President Obama will be able to raise the debt limit as long as Congress does not oppose it by a two-thirds vote.

8:04am | Per Cox Radio’s Jamie Dupree, the bill’s spending cuts completely track the ones in the debt bill passed by the House last week.

7:53am | “Triggers”
As we mentioned last night, the basic enforcement method for getting Republicans and Democrats to agree to the findings of the “Super Committee” are mandatory spending cuts.

For Republicans, that means cuts to defence spending; and for Democrats, that means entitlement cuts.

7:48am | What’s in the debt deal:

  • Drops $6.5 billion Senate plan to auction off certain TV frequencies to wireless/mobile phone companies.
  • Also cuts Senate plan to reallocate “D Block” frequencies for a new national first responder network.
  • Elimination of $11 billion in direct cuts to farmers from the Senate plan.
  • Eliminates subsidized federal Stafford loans for graduate and professional school students.
  • Increases Pell grants for college students.
  • Does not include any language to solve the partial shutdown at the FAA.

7:46am | Sen. McCain says on CBS he’ll vote for deal, although “I will probably have to swallow hard.”

7:17am | The full bill has been posted.
You can read it here. We’re still digesting it, and will bring you the latest when we’ve been through it.

7:16am | Raising taxes still possible.
White House Senior Advisor David Plouffe tells NBC news that the “Super Committee” created by the compromise agreement is authorised to raise taxes.

Speaker of the House John Boehner said that was not the case last night. Expect more on this debate today.

7:11am | “White House “confident
White House Senior Advisor David Plouffe tells ABC News: “We’re confident this deal will and should pass.”

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