Boehner debt ceiling plan

After hours of trying to get enough votes, the Republicans who control the House of Representatives put off action for the night and scheduled an emergency meeting for Friday morning.

The Republican infighting further delays any compromise with Democrats to stop the countdown toward Tuesday when the government says it will run out of money to pay all its bills.

Lawmakers must lift the government's $14.3 trillion borrowing limit by August 2 or risk a devastating default and downgrade of the top-notch credit rating that helps make U.S. debt a pillar of the global financial system.

There was speculation House Speaker John Boehner, the top Republican in Congress, may revise his plan to attract more votes from rebels who want bigger cuts in spending than the roughly $900 billion over 10 years he has proposed.

"Republicans have taken us to the brink of economic chaos," House Democratic Leader Nancy Pelosi said. "The delay must end now so we can focus on the American people's top priority: creating jobs and growing the economy.

Party leaders held out hope that further changes could attract wavering conservatives. The House Rules Committee was set to meet at 11 p.m. Eastern time to amend the measure, striking some or all of $17 billion in supplemental funds for Pell Grants, a move that would add to the plan's $915 billion in deficit savings.

A meeting of the full House Republican conference is planned for Friday morning.

With just days remaining before the federal government runs out of money to pay its bills, the delayed vote left Boehner weakened, and strengthened the hand of Democratic congressional leaders in final efforts to forge a compromise to avert a threatened economic crisis.

The setback marked the second time this week that conservative opposition had forced Boehner to postpone a vote on his debt ceiling proposal, and it dramatically illustrated the power of the "tea party" conservatives to upend the GOP establishment.

The late-night decision came after hours of frantic but so-far unsuccessful arm twisting as House leaders ushered wavering members into leadership offices for meetings with the speaker, Majority Leader Eric Cantor (R-Va.) and Kevin McCarthy (R-Calif.), the majority whip.

Obama, Boehner take cases on debt limit to nation

United States edged closer on Tuesday to a devastating default as Republicans and Democrats were deadlocked over competing plans to raise the debt ceiling, one week before a deadline to act.

President Barack Obama, in a televised address aimed at rallying public support for a package proposed by Democrats, warned that failure to increase the U.S. borrowing limit would severely hurt the nation.

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One of the biggest obstacles remaining: the size of the debt limit increase. House Republicans want an increase of $1 trillion — enough to last about six months, with future increases tied to more cuts and a House and Senate vote on a balanced budget amendment.

The Senate wants $2.4 trillion, enough to get through the 2012 election.

"Based on what we've seen these past few weeks, we know what to expect six months from now," Obama said during a prime-time address to the nation, calling on Americans to urge Congress to compromise.

House Speaker John Boehner said he tried to work with Obama, but the president "would not take yes for an answer."

Sources: House Speaker; Senate Majority Leader

"The sad truth is that the president wanted a blank check six months ago, and he wants a blank check today," Boehner said.

With a House vote scheduled for Wednesday on the Boehner plan and no timetable in the slower-paced Senate, few days would be left to reconcile the two before the government faces the prospect of default.

But there is movement: Both plans take tax hikes off the table, something Democrats had insisted upon as part of a grand deficit-reduction deal. Republicans have also softened their demand to make an increase in the debt limit subject to an immediate vote on a balanced budget amendment.

Both sides have settled on an immediate vote on at least $1.2 trillion in spending cuts. They've also agreed there should be a process to propose future cuts, and give them an up-or-down vote.

The House Republican plan is a modified version of the bill passed by the House, but rejected by the Senate last week. The vote on a balanced budget amendment would be delayed, and many of the spending cuts would be up to a congressional commission.

A number of conservatives said they won't support anything short of the original House position. "Washington wants a deal. Americans want a solution," said Rep. Jim Jordan, R-Ohio.

The Senate plan, by Majority Leader Harry Reid, D-Nev., proposes $2.7 trillion in cuts over 10 years, with no reductions in entitlement benefits such as Social Security or Medicare.

Reid said it also meets two Republican demands: No tax increases and spending cuts at least as large as the debt limit increase.

Boehner plan

• No tax increases.

• Increases the federal debt ceiling by up to $1 trillion coupled with $1.2 trillion in spending cuts in discretionary programs over 10 years.

• Requires a second vote to raise the debt ceiling in 2012.

• Caps future spending. Failure to remain below caps would trigger automatic across-the-board spending cuts.

• Requires a vote on a balanced budget amendment after Oct. 1 but before the end of the year.

• Creates joint congressional committee charged with determining at least $1.8 trillion in spending cuts in entitlement programs, such as Medicare and Social Security, over 10 years. The House and Senate would vote for proposal on an up-and-down basis with no amendments. If passed, the president would be authorized to seek a $1.6 trillion increase in the debt ceiling.

Reid plan

• No tax increases.

• Raises debt ceiling by $2.5 trillion through 2012.

• $1.2 trillion in spending cuts over 10 years.

• $100 billion in savings that include reduced fraud and abuse in mandatory programs, changes Fannie Mae and Freddie Mac, sales of the radio spectrum and changes in agricultural programs.

• $1 trillion in savings from winding down the wars in Iraq and Afghanistan.

• $400 billion in interest savings.

• Creates joint congressional committee to find future savings. The recommendations would receive an up-or-down vote by the end of 2011. Unlike Boehner’s plan, the increase in debt ceiling is not contingent on approval of this committee’s proposal.