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House GOP Proposes 3-Month Debt Limit Deal

Earlier today, House Republicans announced a plan to condition a three-month increase in the debt limit on the Senate committing to pass a budget by the April 15th statutory deadline.  As a consequence of not meeting that statutory deadline, the House GOP proposal would withhold congressional members pay.  The 1974 Congressional Budget Act requires passage of a budget resolution by that date each year, yet the Senate has not approved a budget for the past four years.

House Speaker Boehner (R-OH) had said since 2011 that any increase in the debt ceiling must be accompanied by dollar-for-dollar spending cuts or reforms.  The new 3-month delay proposal would not include any additional spending cuts.

The White House, which has demanded a “clean” debt-ceiling increase free of spending cuts, welcomed the proposal as a step in the right direction.