Snapshot: Developments in debt talks

Reuters News
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Posted: Jul 20, 2011 7:03 AM
Snapshot: Developments in debt talks

WASHINGTON (Reuters) - Here is what to expect on Wednesday in negotiations to raise the U.S. government's $14.3 trillion debt limit by August 2 and avoid a U.S. credit default.

* No face-to-face meetings scheduled between President Barack Obama and congressional leaders. That could change. Meanwhile, Obama is likely make a case for comprehensive deficit reduction package in a number of interviews with radio and television stations that are set to air staring at 5 p.m. EDT (2100 GMT)

* The Senate later this week hopes to take up a fallback plan to raise the debt limit. It is based on a proposal first offered by Senate Republican leader Mitch McConnell that would allow Obama to raise the debt ceiling and leave it to Congress to block the move. Senate Democratic Leader Harry Reid has been working with McConnell to include some spending cuts.

* A House-passed Republican plan to "cut, cap and balance" the budget heads to the Democratic-led Senate where it faces certain rejection. Democratic opponents say the bill's goals would require deep cuts to the Social Security retirement program as well as Medicare and Medicaid health programs for the elderly and poor.

(Reporting by Donna Smith)