With a deadline of August 2 fast approaching, Congress needs to raise the $14.3 trillion debt limit to prevent economic catastrophe. Senator Reid (D-NV) released the following statement: “The Senate has no more important task than making sure the United States does not fail to pay our bills for pre-existing obligations like Social Security for the first time in our history. To ensure that we meet this responsibility, the Senate will stay in session every day, including Saturdays and Sundays,from now until Congress passes legislation that prevents the United States from defaulting on our obligations.”
Debt between President Obama and House Republican leadership have stalled, and Reid and Senate Minority Leader Mitch McConnell (R-KY) are working on a fallback plan that calls for some spending cuts and would hand Obama broad authority to hike the debt limit. The House plans to vote this week on a proposal backed by conservatives to “cut, cap and balance” the budget, but the plan has little chance of passing the Senate and Obama threatened Monday to veto the bill should it reach his desk.