Dems, GOP Deadlocked - Spokane, North Idaho News & Weather KHQ.com

Dems, GOP Deadlocked

WASHINGTON (AP) - Republican House members came to the Capitol on Saturday to even the score with the Senate, preparing to reject Democratic legislation to avert an unprecedented U.S. financial default after senators turned down the House's plan. Three days before the debt-limit deadline, lawmakers and President Barack Obama remained at loggerheads on the debt crisis.

The House convened for its unusual Saturday session at 1 p.m. EDT.

The day's vote, though sure to be negative, could pave the way for negotiations on a compromise with Tuesday's deadline on the government's ability to pay its bills fast approaching. Obama, in his weekly radio and Internet address, warned that "there is very little time" and pleaded with both Republicans and Democrats to stop political gamesmanship.

"The time for compromise on behalf of the American people is now," Obama said.

Setting the stage for the high-stakes weekend, Senate Democrats late Friday killed a House-passed debt-limit increase and budget-cutting bill less than two hours after it squeaked through the House. Senate Majority Leader Harry Reid, D-Nev., set up a test vote for the wee hours of Sunday morning to break a GOP filibuster on his own legislation.

Before then, however, the House scheduled a vote Saturday afternoon to reject Reid's alternative measure before the Senate could take it up.

House Speaker John Boehner, R-Ohio, made it clear how that vote would go.

In a news release titled "DOA: Sen. Reid's Bill a Non-Starter in the House (and the Senate?)," the Ohio Republican said the vote "will demonstrate that the Reid bill cannot pass the House. This will also expose any Senate vote on the Reid bill as a pointless political exercise that squanders precious time as the specter of a job-crushing default looms."

Democrats, Republicans and the White House, meanwhile, were expected to be deep in conversation in hopes of a potential compromise. Senate GOP leader Mitch McConnell of Kentucky was likely to play a pivotal role.

The outcome of the weekend endgame was anything but clear as Democrats and Republicans remained at odds over how to force lawmakers to come up with additional budget savings later this year beyond the almost $1 trillion in agency budget cuts over the coming decade that they basically agree on.

After a brutal week on Wall Street — investors lost hundreds of billions of dollars as the markets lost ground every day — pressure is intense to produce an accord before the opening bell on Monday.

The House measure squeaked through on a 218-210 vote, with 22 Republicans joining united Democrats in opposing the GOP measure, which pairs an immediate $900 billion increase in U.S. borrowing authority along with $917 billion in spending cuts spread over the coming decade.

Friday's roll call came after Boehner had been forced to call off a vote slated for Thursday in the face of tea party opposition to the measure. He added a provision requiring that a second, up to $1.6 trillion debt increase be conditioned on House and Senate passage of a balanced-budget amendment to the Constitution, which would require an unrealistic two-thirds vote by each chamber to send it to the states for ratification.

Boehner's move only cemented Democratic opposition to the measure and complicated prospects for a weekend compromise that could clear both houses and win Obama's signature by next Tuesday's deadline. And by appeasing the tea party by adding the balanced-budget amendment poison pill, Boehner seemed to hand endgame leverage to Reid and Obama.

Boehner said the House bill — before the addition of the balanced-budget amendment — mirrored an agreement worked out with Reid last weekend.

"Now the bill before us still isn't perfect," Boehner said as he closed debate. "It's imperfect because it reflects an honest and sincere effort to end this crisis by sending a bill over to the Senate that at one time was agreed to by the bipartisan leadership of the United States Senate."

Still, as soon as the measure reached the Senate side of the Capitol, Senate Democrats scuttled the measure without so much as a debate on its merits. The vote was 59-41, with all Democrats, two independents and six Republicans joining in opposition.

Reid's alternative measure would raise the debt limit by up to $2.4 trillion, enough to meet a demand by Obama that the increase be sufficient so that Congress doesn't have to wrestle with it again until 2013.

Administration officials say that without legislation in place by the end of Tuesday, the Treasury will no longer be able to pay all its bills. The result could inflict significant damage on the economy, they add, causing interest rates to rise and financial markets to sink.

Executives from the country's biggest banks met with U.S. Treasury officials to discuss how debt auctions will be handled if Congress fails to raise the borrowing limit before Tuesday's deadline.

 

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