This evening (Sunday, July 31, 2011), Obama reached a compromise with Republican congressional leaders on the debt ceiling, to avoid a financial default.
Few details are available but the AP’s David Espo reports that the deal would:
- Cut more than $2 trillion from federal spending over a decade. Thousands of programs – the Park Service, Labor Department and housing among them – could be trimmed to levels last seen years ago.
- But the federal debt limit would rise in two stages by at least $2.2 trillion, enough to tide the Treasury over until after the 2012 elections.
- No Social Security or Medicare benefits would be cut, but the programs could be scoured for other savings. Both could be on the table along with changes in tax law as part of future cuts.
- Taxes would be unlikely to rise.
No votes were expected in either house of Congress until Monday at the earliest, to give rank-and-file lawmakers time to review the package. But leaders in both parties were already beginning the work of rounding up votes.
Senate Democratic leader Harry Reid bombastically proclaimed that “in the end, reasonable people were able to agree on this: The United States could not take the chance of defaulting on our debt, risking a United States financial collapse and a world-wide depression.”
To read the full AP article, go here.
H/t beloved fellow Anon!