It looks like a deal on the debt ceiling is in hand. Alexander Bolton, ace congressional reporter for The Hill, appears to have the lowdown.
A congressional source said Saturday night that Obama and GOP leaders had reached a tentative deal that would raise the debt limit by between $2.4 trillion and $2.8 trillion.
It would include spending cuts of about $1 trillion and set up a select bicameral committee to recommend a second deficit-reduction package worth between $1.4 trillion and $1.8 trillion by Thanksgiving.
If Congress fails to approve the committee’s recommendations, cuts to Defense and Medicare would go into effect automatically, giving both parties incentive to reach a later agreement.
They’ll pass something. They have to. Once Republican and Democratic leaders sign off, the legislation will get enough votes from either caucus to move through the House and the Senate.