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BUDGET

House Republicans, White House Discussing $3 Trillion Budget Deal

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(Alex Wong/Getty Images)

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The White House and House Republican leaders are discussing a large deal to raise the debt ceiling that would include about $3 trillion in deficit cuts over 10 years, according to several congressional aides.

 

The aides, who declined to be named because they weren't authorized to speak publicly, said the proposal’s outline is broadly similar to a plan discussed previously by President Obama and House Speaker John Boehner, R-Ohio, and a "Gang of Six" proposal to cut about $3.7 trillion in a decade, with the major exception that it would not raise significant tax revenue. The gang proposal, by contrast, would seek $1 trillion of its deficit cuts from new tax revenue.

A White House official who asked not to be identified said progress was being made in the discussions. But the official declined to provide any details, deferring to Boehner’s ongoing presentations to House Republicans as he works to determine whether he can garner the necessary support for passage.

As described, the plan would be a major, and unexpected, concession to congressional Republicans. The lack of immediate tax revenue would be a nonstarter for many Democrats in Congress, endangering its prospects in the Senate in particular. The mere fact the deal is under discussion already has Democrats up in arms. Democratic lawmakers ripped the proposal after Office of Management and Budget Director Jacob Lew briefed them at a Caucus meeting on Thursday.

 

“There has to be fairness in this,” Senate Majority Leader Harry Reid, D-Nev., told reporters. “This can’t be all cuts. There has to be a balance. There has to be some revenue and cuts. My Caucus agrees with that. I hope the president sticks with that. I am confident he will.”

Sen. Barbara Mikulski, D-Md., said Democrats “are volcanic at this point.”

“You can't ask us to vote when we haven't been part of the deal,” Mikulski said. 

Democratic congressional leaders met Thursday evening with the president at the White House. The meeting, which began about 5:30, ended around 7:30.  

 

Congressional aides said an agreement on the proposal is not imminent, characterizing discussions on the proposal as being at an early stage.  

A House leadership aide, meanwhile, told National Journal that Boehner is letting House Republicans know he will unveil a debt-ceiling plan to them during their closed-door conference on Friday. 

But Boehner spokesman Michael Steel vehemently denied that would be the case. Pressed about whether just some details or contours of a plan would be discussed, Steel insisted that would not happen, either. He would not say what, then, will be discussed at the Republican conference.

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"While we are keeping the lines of communication open, there is no 'deal' and no progress to report,” Steel said. “We are still focused on the 'cut, cap, and balance' bill that passed the House with bipartisan support, and hope the Senate will take it up as soon as possible."

Reid said Thursday that the Senate would move the vote on the cut, cap, and balance measure from Saturday to Friday. The bill is expected to be defeated in the Senate, clearing the way for a compromise bill.

White House spokesman Jay Carney also denied reports that a deal was close. “There is no deal; we are not close to a deal. Obviously the president is in discussions with all the leaders of Congress ... and exploring the possibility of getting the biggest deal possible,” Carney said.

On Friday, Obama will hold a town hall meeting at 11 a.m. at the University of Maryland on "the on-going efforts to find a balanced approach to deficit reduction," according to a White House statement.

Billy House and Major Garrett contributed. contributed to this article.

This article appears in the July 21, 2011 edition of National Journal Daily PM Update.

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