Republicans offer to give Obama debt-ceiling powers
July 13, 2011 12:09AM
Senate Minority Leader Mitch McConnell of Ky., second from left, and fellow Senate Republican Senators, leave a news conference on Capitol Hill in Washington, Tuesday, July 12, 2011. From left are, Sen. John Barrasso, R-Wyo., McConnell, Senate Minority Whip Jon Kyl of Ariz., and Sen. Lamar Alexander, R-Tenn. (AP Photo/Susan Walsh)
Updated: July 13, 2011 2:12AM
WASHINGTON — With compromise talks at a standstill, Senate Republicans unexpectedly offered Tuesday to hand President Barack Obama new powers to avert a first-ever, potentially catastrophic government default threatened for Aug. 2.
Under a proposal outlined by Senate Minority Leader Mitch McConnell of Kentucky, Obama could request — and likely secure — increases of up to $2.5 trillion in the government’s borrowing authority in three separate installments over the next year, as long as he simultaneously proposed spending cuts of greater size.
The debt limit hikes would take effect unless blocked by Congress under special rules that would require speedy action — and even then Obama could exercise his authority to veto such legislation.
McConnell made his proposal public a few hours before Obama presided over his third meeting in as many days with congressional leaders.
Obama, meanwhile, told CBS in an interview that he could not guarantee that Social Security checks would go out on Aug. 3 “if we haven’t resolved this issue.”
“There may simply not be the money in the coffers to do it,” he said. AP
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