Speaker of the House John Boehner’s deficit reduction plan was posted by the House Rules Committee last night, setting the stage for a vote on the bill on Wednesday.His proposal would introduce statutory spending caps for the next 10 years, and requires that Congress consider a balanced budget amendment to the Constitution between October 1st and the end of the year. $1 trillion in cuts would be made immediately.
The Boehner plan would raise the debt limit in two stages — using the backwards method proposed by Sen. Mitch McConnell to force Congress to “disapprove” of an increase to the borrowing limit. The second tranche is contingent on the passage of $1.6 trillion in savings proposed by a newly created congressional committee.
The legislation would also eliminate loans for graduate and professional school students, while increasing federal Pell grant support.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.