Dueling plans for debt ceiling

Reporting from Washington

The Republican leader of the House and the Democratic leader of the Senate issued dueling proposals to allow the federal debt ceiling to be raised — both with steep spending cuts, but neither with a clear route to ending the standoff over the government's ability to pay its bills.

The plan also provides an expedited track for the president to request a hike in the debt limit to be implemented in two stages. A first step calls for Congress to pass $1.2 trillion in spending cuts, allowing the president to request a $1 trillion hike in the debt ceiling. The request would be deemed passed unless Congress votes a resolution of disapproval – a procedure first proposed by Senate Republican leader (Mitch McConnell).

This expedited procedure allows Congress to raise the debt limit with only a third plus one votes in either the House or Senate, the threshold for sustaining a presidential veto – saving many lawmakers a difficult, but necessary vote.

The next stage empowers a new legislative commission – six Republicans and eight Democrats – to find an additional $1.8 trillion in spending cuts, that would include cuts to Medicare, Medicaid and Social Security, which is a nonstarter for Democrats. If passed, this second-stage vote also opens the door to a presidential request to raise the debt ceiling through 2012, also on a fast track.

Finally, the GOP plan requires a vote in both the House and Senate on a balanced-budget amendment to the US Constitution. The House GOP’s cut, cap, and balance measure set a higher threshold – requiring that Congress pass a balanced budget amendment and send it on to the states for ratification.

But those hopes were dampened Monday by conservative opposition to the plan, highlighted by Rep. Jim Jordan (Ohio), who leads a conservative caucus of more than 170 GOP members. Jordan is one of 39 House Republicans who previously took a pledge vowing to increase the debt ceiling only in return for Congress sending to the states a constitutional amendment requiring a balanced budget.