Posts Tagged ‘whitehouse’

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A delegation of 18 House Republicans is heading to the White House Thursday afternoon to propose a short-term increase in the debt ceiling, which the White House indicated President Obama could sign — but the deal would not resolve the partial government shutdown which is now in its 10th day.

The goal of the proposal appeared to be to buy time, by removing the immediate threat of missing an Oct. 17 deadline to raise the debt ceiling, for both sides to strike a broader agreement on spending and debt.

House Speaker John Boehner and his deputies announced the proposal after pitching it to rank-and-file Republicans in a closed meeting. The plan would allow for a six-week extension of the debt ceiling with no strings attached, as long as Obama and Democrats make a “real commitment” to negotiate over the partial government shutdown and a longer-term debt-ceiling hike.

“It’s time for leadership,” Boehner said.

White House Press Secretary Jay Carney indicated that Obama could sign it. While stressing that the president still needs to see a bill, he said that if a “clean” bill to hike the debt ceiling for six weeks hits his desk, “He would sign that.”

Carney said Obama still would strongly prefer that Congress approve a longer-term increase in the debt ceiling and approve a spending bill right away. Pressed repeatedly by reporters, Carney appeared to open the door to a short-term increase in the debt limit even if the partial government shutdown is not addressed.

That means the partial shutdown could easily continue into next week and beyond, without the pressure of the Oct. 17 deadline. That’s when Treasury officials warned the nation would be unable to pay all its bills, absent a debt-ceiling hike.

Inside the GOP caucus, reaction to the Republican leaders’ plan appeared to be mixed, with some voicing support and others voicing skepticism. One source said leadership was “taking the temperature of the conference” before taking the idea to Obama.

Despite Carney’s remarks, a prior statement from the White House was non-committal over the new plan.

A White House official said “we are willing to look at any proposal Congress puts forward to end these manufactured crises” but will not “allow a faction of the Republicans in the House to hold the economy hostage to its extraneous and extreme political demands.” The official said Obama still wants the House to pass a spending bill first, and raise the debt ceiling, before Obama will negotiate.

The official also reiterated that Obama would prefer a longer-term debt-ceiling increase, like the one-year extension the Senate is considering.

Sources said the new GOP proposal would increase the debt ceiling through a hard deadline of Nov. 22, but also call for negotiators to be appointed to discuss the budget — and require Obama to work with them on both the debt limit and budget.

Pressure is increasing on all sides to work out an agreement. Treasury Secretary Jacob Lew testified on Thursday that both stalemates are creating a drag on the economy and Wall Street.

He issued dire warnings about failing to raise the debt ceiling. He did not specifically warn that the government would be unable to pay interest on the debt, but said payments ranging from Social Security checks to Medicare reimbursements to military salaries could be halted by the end of the month.

He said some of the repercussions would be unpredictable since this is “uncharted territory.”

“It would be chaos,” Lew said.

Though some Republicans have accused the administration of exaggerating, many still do not want to toy with breaching the debt-ceiling deadline.

Senate Republicans are set to meet with Obama at the White House on Friday morning.

Fox News’ Mike Emanuel, Chad Pergram and Fox Business Network’s Rich Edson contributed to this report.

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