American Debt Linit,  American Economy

The White House and GOP Have Reached a Tentative Deal on the Debt Limit

According to ABC News.

ABC News has learned that Republicans and the White House have struck a tenative deal to raise the debt ceiling before the Aug. 2 deadline. It’s not done yet, but here is the framework of the tentative deal they have worked out, according to a source familiar with the negotiations:

    Debt ceiling increase of up to $2.8 trillion
    Spending cuts of roughly $1 trillion
    Vote on the Balanced Budget Amendment
    Special committee to recommend cuts of $1.8 trillion (or whatever it takes to add up to the total of the debt ceiling increase)
    Committee must make recommendations before Thanksgiving recess
    If Congress does not approve those cuts by late December, automatic across-the-board cuts go into effect, including cuts to Defense and Medicare.

A senior White House aide pushed back against the idea that a deal was struck.

“Talks continue, but there is no deal to report,” the aide said.

There is some push back from Democrats and Republicans on Twitter.

Senate majority leader Harry Reid has postponed a vote on his plan in the Senate until 1 PM (EDT) tomorrow.

Stay tuned…..