Senate holds off on pressing Plan B on debt limit

AP News
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Posted: Jul 22, 2011 11:16 AM
Senate holds off on pressing Plan B on debt limit

The Senate's top Democrat is holding off on pressing ahead with a backup plan to avoid a government default.

The plan would give President Barack Obama new powers to order an increase in the government's borrowing limit. There's an Aug. 2 deadline to act.

Sen. Harry Reid says talks between Obama and House Speaker John Boehner are focused on producing legislation involving taxes and that the House would have to act first.

The Nevada Democrat has canceled weekend sessions that he had said earlier would be held.

His announcement seems to reflect the fading prospects for the backup plan. It would let Obama raise the borrowing cap by $2.5 trillion in over the next year unless overridden by two-thirds of Congress.

Tea party-backed lawmakers strongly oppose the idea.