With Two Days To Go, House GOP Splinters From Senate, To Propose Its Own Bill

It is becoming clear that the House is splitting off from the Senate negotiations (especially after Rep.Paul Ryan's comments that the "Senate Plan is not enough" and as Robert Costa reports, there is a bill emerging that has a little (maybe not enough) for everyone - "CR + DL + med device + income verification + Vitter language." Obama appears to be demanding more concessions in his "unconditional surrender or default" strategy as tells McConnell that Treasury needs flexibility (i.e. as we approach the next debt ceiling deadline - assuming this one is passed - the Treasury should be allowed to tinker with things to keep the ball rolling). Equity markets are growing more nervous - especially in light of the fact that being this close to the edge, a well-meaning politician looking to make a name for him- or her-self could filibuster the US past the X-date with nothing to be done about it. The biggest issue is that with much negotiation and debate obviously left on the table, there is a hard limit in just over 36 hours, a timeframe that is becoming increasingly unfeasible and which implies a breach of the X-Date - if even briefly - is very much possible. What is worse, is that since nothing immediately bad would happen on October 17 with no deal, that the GOP can further protract negotiations in an attempt to force Obama's hand to yield some additional compromise.

House as soon as today will take up own bill on reopening govt, extending debt-limit, House Speaker John Boehner tells Republicans in closed-door meeting this morning, Republican House aide tells Bloomberg’s Phil Mattingly.

 

 

And Costs confirms the details...

  • CR to 1/15
  • Debt Limit to 2/7
  • 2 year medical device tax suspension
  • Income verification
  • Obamacare for members, cabinet members (Version of Vitter language)

But

Rep. Ryan Says Budget Provision in Senate Plan Not Enough

“We need to do more than that,” Rep. Paul Ryan, R-Wis., says of provision in Senate plan requiring budget talks by Dec. 13.

“A budget resolution isn’t enough to solve the problem,” Ryan says as he enters meeting of House Republicans at the Capitol today

And

Obama Said to Tell McConnell Treasury Wants Flexibility

Treasury Dept wants flexibility to use “extraordinary measures” in managing debt limit, President Obama told Senate Minority Leader Mitch McConnell, R-Ky., in phone call yesterday, person familiar with the discussion tells Bloomberg’s Julianna Goldman.

Republicans have sought to prohibit use of those measures to prolong debt ceiling as part of budget deal; such measures lasted five months this year

Sen. Max Baucus, D-Mont., said yesterday removing Treasury flexibility “very unwise”

Emerging agreement in Senate extends debt-limit through Feb. 7

And

Conservatives Say Boehner Will Reject Senate Plan: Nat. Review

House Speaker John Boehner, R-Ohio, expected to send Senate alternative to extend debt ceiling, reopen govt, set up budget conference, add conservative demands that go beyond Senate plan, National Review’s Robert Costa reports, citing unidentified Republican House members.

Senate plan will be “DOA,” focus will return to House and idea of doing 6-week debt ceiling extension, unidentified House conservative strategist tells National Review

House Republicans meeting this morning to discuss emerging Senate agreement to reopen govt, extend debt-ceiling to Feb. 7

 

Equity markets are not happy...

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