Senate votes down GOP 'cut, cap and balance' plan

The Senate voted 51 to 46 on Friday to kill the House-passed "cut, cap and balance" bill, clearing the way for Congress to consider another measure to raise the federal debt ceiling with negotiations at a critical point before the Aug. 2 deadline.

It remains to be seen if the alternative will be the so-called grand bargain being discussed between the White House and House Republicans, or a fall back, like the plan from Senate Majority Leader Harry Reid, D-Nev., and Minority Leader Mitch McConnell, R-Ky., to give President Obama the power to raise the ceiling by $2.5 trillion in three steps.

House Republicans had publicly touted the "cut, cap and balance" bill as their solution on how to raise the $14.3 trillion debt ceiling and GOP leaders hope its defeat will make it easier for rank-and-file Republicans to accept an alternative deal.

The bill would have required slashing spending by more than $100 billion in fiscal 2012 and eventually capping federal spending at about 20 percent of GDP. It required Congress to pass a Balanced Budget Amendment to raise the debt ceiling.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Sponsored by eSignLive by VASCO

    Mobile E-Signatures for Government

    Learn 5 key trends that accelerate government demand for mobile signing.

    Download
  • Sponsored by Management Concepts

    SPONSORED: Successful Change Management Practices in the Public Sector

    How governmental agencies implement organizational change management.

    Download
  • Sponsored by Kronos

    Solving the Workforce Compliance Challenge

    Download this eBook to learn how data and automation can help state and local agencies.

    Download

When you download a report, your information may be shared with the underwriters of that document.