After Debt Ceiling Negotiations Collapse, Congress Turns to Opposing Senate and House PlansImage Banner

After Debt Ceiling Negotiations Collapse, Congress Turns to Opposing Senate and House Plans

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After Debt Ceiling Negotiations Collapse, Congress Turns to Opposing Senate and House Plans

July 25, 2011

After dueling press conferences Friday night, President Obama and House Speaker Boehner (R-OH) announced the breakdown of negotiations to increase the debt limit tied to plans to cut spending. The President called Senate and House leadership to the table to resume negotiations on Saturday. Amidst a continued record–level heat wave, Congressional leaders and the White House failed to reach accord on a big budget plan. By Sunday, Senate Majority Leader Reid (D-NV) and Boehner announced that each were working on separate plans that could meet the August 2nd deadline before the U.S. would begin defaulting on its debt obligations. Reid is working on a plan that would raise the debt limit by $2.4 trillion through 2012. The $2.7 trillion plan in spending cuts is designed to gain Democratic and Republican support by not including any entitlement cuts (e.g., Medicaid and Medicare) nor tax increases. The Boehner backup plan appears to contain a two step process beginning with $1 trillion in cuts connected to a six-month short-term increase in the debt ceiling, followed by a second future ceiling with more spending cuts and entitlement and tax reforms guided by a legislative commission. Congress is likely to spend the week on these dueling proposals as the clock ticks toward the August 2nd deadline.

Congress is likely to spend the week on these dueling proposals as the clock ticks toward the August 2nd deadline. ANCOR urges its members to continue contacting their Congressional delegation and the White House with their Medicaid message. Use ANCOR's Action Alert to contact members of Congress and the White House.