Throw out the Balance Budget Amendment folks!
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
- Special committee to recommend cuts of $1.8 trillion (or whatever it takes to add up to the total of the debt ceiling increase)
- Vote on the Balanced Budget Amendment
- 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.