A day after the House postponed its vote on Speaker John Boehner's Budget Control Act, Washington remains at a stalemate. Follow our live blog below for the latest developments.
7:12 p.m. A note about the upcoming vote in the Senate: The motion is written in a way that the content of Boehner’s bill can be rejected, but the bill itself will remain as a shell. That would allow Democrats and Republicans to use it as a vehicle if a compromise between the Senate and House bills emerge.
7:02 p.m. The American Federation of State, County and Municipal Employees (AFSCME) released a statement condemning Republican House leaders, whose recent vote, they say, "willfully brings us to the brink of economic turmoil."
6:24 p.m. The two-step plan to raise the debt ceiling proposed by Speaker of the House Rep. John Boehner, R-Ohio, passed by 218-10 in the House. The plan has been called "dead on arrival in the Senate," though it took a triumph in inner-party negotiations to gain enough Republican support from conservatives in the Tea Party caucus.
6:10 p.m. "Cut, Cap and Balance" gets simple majority needed for vote. Voting underway now. Without any support from Republicans, Boehner can still lose 24 Republicans for a pass.
5:40 p.m. Speaker Rep. John Boehner, R-Ohio, speaks before the upcoming vote on his "Cut, Cap and Balance" bill in the House. Boehner called the balanced budget amendment proposed in the legislations "a great cause."
Boehner said, "What this bill now says is that before the president can request an additional increase in the debt limit, two things have to happen: A joint committee of the congress must produce a spending cuts larger than the increase in the debt limit and both houses of the congress must send to the states a balanced budget amendment."
5:15 p.m. The Treasury Department would delay its auctions of Treasury notes and bills if lawmakers fail to extend the debt ceiling, Bloomberg reported, citing Morgan Stanley.
Instead, Treasury could issue short-term cash-management bills. An August 1 auction will proceed as scheduled.
"They’ll delay the auctions and issue short-term cash-management bills and just keep rolling them,” James Caron, head of U.S. interest-rate strategy at Morgan Stanley, told Bloomberg.
4:55 p.m. Will Boehner carry the votes he needs in the House tonight? Take a look at National Journal's updated list of yes's and no's to find out.
4:35 p.m. The stock market closes after its worst week in a year. The price of gold is up: $1631.20/ounce.
4:30 p.m. Rep. James Lankford, R-Okla., told CNBC that many Americans who oppose the Boehner plan haven’t read it. He’s urging the constituents calling his office to take a look. We have it here: Latest Versions of Boehner, Reid bills.
4:17 p.m. National Journal's Alex Roarty reports that one group is still not satisfied with the bill the House is set to vote on tonight. Heritage Action for America, the political arm of the Heritage Foundation, says Boehner's proposal still misses the mark—even with its inclusion of a balanced budget amendment to the Constitution.
3:40 p.m. Sen. Chris Coons, D-Del., on MSNBC’s Martin Bashir this afternoon, said he didn’t know why Boehner included a balanced budget amendment in his latest bill—but that he could guess. After Boehner struggled to get the votes from his own caucus last night, he decided to “make the bill more conservative to shore up his own position and secure the speakership, and play more to his tea party caucus, thus dooming the bill from having serious hope of passage here in the Senate,” Coons said.
3:35 p.m. Sen. John Kerry, D-Mass., on the breakdown in negotiations: "You know the Chinese are looking at us right now and they are just gleeful and incredulous ... it is unprecedented of anything I have seen in all the time I’ve been in public life."
3:06 p.m. Tea Party Patriors cofounders Jenny Beth Martin and Mark Meckler released a statement on the latest breakdown between Boehner and tea party Republicans. An excerpt: "The Tea Party Patriots, which helped give Speaker Boehner and Republicans in Congress their power in November, continue to hold our representatives accountable for their actions as all citizens should.... Unfortunately, some Tea Party-allied lawmakers have been successfully bullied by the Republican Leadership, as we predicted would happen in November. The pressure being brought by the Republican leadership telling members to ‘get their _______s in line’ is immense."
2:40 p.m. Republican aides say the vote on Boehner's debt-ceiling bill in the House is scheduled for sometime between 7 and 8 p.m. tonight.
2:38 p.m. Neel Kashkari, one of the architects of TARP, asks in an op-ed to the Washington Post, "Could a U.S. debt downgrade trigger a financial crisis?" His answer: It's a definite possibility.
2:16 p.m. The Treasury Department and New York Federal Reserve met with some of the biggest banks on Wall Street today to discuss the possibility of the U.S. defaulting on its debt. Reuters reports that the meeting was originally slated to involve representatives from around half of the 20 primary dealers but was expanded at the last minute to include all the banks and security firms authorized to deal directly with the Treasury and Fed.
2:10 p.m. Gallup poll reveals: President Obama's approval rating drops to new low of 40 percent.
2 p.m. Boehner taking to the podium on the House floor now.
1:47 p.m. Sen. Mark Warner, D-Va., a member of the "Gang of Six" senators, said on MSNBC, “Our bill still gets a vote at the end of this commission process.”
1:40 p.m. Republican leaders meeting over spaghetti with Senate Minority Leader Mitch McConnell, R-KY.
1:25 p.m. Carney: “This administration does not believe that the 14th Amendment gives the president the power to ignore the debt ceiling."
1:07 p.m. Carney on the possibility of kicking debt-ceiling negotiations down the road, as the GOP plan may suggest, "Any measure that suggests we should be having this conversation again in about a half a year is just a wildly bad idea."
1:05 p.m. Carney when asked if the president would call congressional leaders to the White House this weekend: “Anything is certainly possible ... but nothing has been scheduled yet.”
1 p.m. Carney taking questions on the debt ceiling now. When asked about White House involvement in current negotiations on House and Senate bills, Carney answered, "We are involved in conversations about what an end product could look like, a compromise that allows us to do what we absolutely must do."
12:55 p.m. Boehner's bill will move to a vote. Read here.
12:50 p.m. Carney's presser is on new auto standards--raising fuel efficiency to 35 miles per gallon by 2018. We'll wait and see if he'll take questions about the debt ceiling negotiations.
12:46 p.m. Boehner's bill is likely to go to the House floor after GOP leaders "sweetened" the deal to make it more tea party friendly, according to Time.
12:30 p.m. White House press secretary Jay Carney is about to speak.
12:22 p.m. Sen. Chuck Schumer, D-N.Y.: "Speaker Boehner should just give it up."
12:15 p.m. Senate Majority Leader Harry Reid, D-Nev., at a stakeout, referring to the House: "It's really time that they legislate. As we know, they're having trouble doing that." Reid said he will reach out to Senate Minority Leader Mitch McConnell, R-Ky., to see how his legislation can be improved.
To Republicans: "Do the right thing. Put the interests of the country in front of those of tea party extremists," Reid said.
12:12 p.m. Whip update: Support for the bill is growing. We're down to 19 Republicans who say they'll vote against it.
12:03 p.m. House Democrats to hold a closed caucus meeting at 1 p.m., according to Felicia Somnez of The Washington Post.
11:54 a.m. The House Rules Committee will meet at 12:50 p.m. to consider the revised Boehner bill, per Cox Radio's Jamie Dupree.
11:40 a.m. National Journal has obtained the latest version of Boehner's proposal. Read it here.
11:34 a.m. Phone circuits are apparently nearing capacity on Capitol Hill, similar to what happened on Tuesday. Obama reiterated his call for people to contact Congress. From Chad Pergram of Fox News: "Capitol Telephone Circuits "Near Capacity." They've sent out a system alert. In the House, typical call volume is 20K per hour."
11:31 a.m. Things are apparently looking up for Boehner. NBC's Jesse Rodriguez, via Twitter: "NBC: Speaker Boehner asked if he had a deal as he departed the House GOP Conference meeting. He responded, 'I'm smiling' "
11:25 a.m. From NJ's Julia Edwards:
Just out of a meeting with Boehner, House Republican aides told the Wall Street Journal that GOP leaders could alter the stalled plan to include a balanced budget amendment.
President Obama said he would not sign such an amendment in his address this morning.
11:07 a.m. Markets are recovering rapidly after the president's speech. The Nasdaq and S&P 500 are posting modest gains, while the Dow is down only about 20 points.
11:04 a.m. Macon Phillips, Obama's director of digital strategy, says people should use the Twitter hashtag #compromise when tweeting about the debt negotiations.
10:56 a.m. From NJ's Rebecca Kaplan, who is on press pool duty and was in the room with the president: "He seemed relatively positive, unlike last Friday."
10:52 a.m. More from NJ's George E. Condon Jr.:
With the House in seeming chaos, the stock market dropping and the deadline looming, President Obama Friday morning demanded action by Congress to raise the debt ceiling, declaring that “the time for putting party first is over. The time for compromise on the part of the American people is now.”
He called on the public again to phone, email, even Tweet, their representatives in Congress to act now.
10:48 a.m. Igor Bobic of Talking Points memo tweets: "Jeff Flake is a yes," referring to the Arizona Republican congressman.
10:43 a.m. The Dow Jones industrial average dropped six points during Obama's speech. At the start, it was trading down 90.59. At the end, it was trading down 96.57.
10:42 a.m. In his statement, Obama made little news, but continued to encourage Democrats and Republicans to come to a compromise. "The time for putting party first is over," he said. "The time for compromise is now."
The president also encouraged Americans to continue to call Congress to let their voices be heard.