The RP’s Budget Crisis Update- July 30

Harry Reid is hoping to pass his bill with bipartisan support by adding elements from proposals by Mitch McConnell.

After a provision for the Balanced Budget Amendment was added at the last minute, the third iteration of Speaker Boehner’s debt bill passed the House 218-210, with all Democrats and 22 Republicans voting against it. Within only two hours, the Democratically-controlled Senate tabled the measure in a 59-41 vote that saw all 51 Democrats, 2 Democratically-aligned Independents, and 6 conservative Republicans vote against the measure. The Senate returned to session at 1 p.m. Today and a vote on Majority Leader Reid’s plan is expected around 1 a.m. Sunday morning. [Washington Post]

Among the 28 Republican “nays” between the two houses of Congress, seven came from the entirety of the South Carolina delegation. (Of the state’s six Representatives and two Senators, only House Assistant Minority Leader James Clyburn is a Democrat.) This move came as a result of the conservative lawmakers pushing for a Balanced Budget Amendment and deeper spending cuts than had been provided in the Boehner bill. [National Journal]

As of Friday morning July 29, Apple Computer has more cash on reserve than the Federal government- Apple’s $75.88 billion to the Treasury’s $73.77 billion. [MarketWatch]

Skipping Social Security payments has been floated as a possible response if Congress fails to come to a final deal on the debt ceiling. Outside analysis, however, has shown the possibility that doing so will unleash a “domino effect” of missed payments and pursuant interest rate hikes, especially among elderly women. [Huffington Post]

In a plan sent to Talking Points Memo, Senate Majority Leader Harry Reid put together what may be his final debt deal to Senate Republicans, designed to bring as many as possible on board to convince the House to pass the bill. Included are deeper spending cuts, to approximately $2.4 billion, and a provision, drawn from Minority Leader Mitch McConnell’s plan, to give President Obama the authority to raise the debt ceiling subject to Congressional disapproval. [Talking Points Memo]

Using evidence from budget impasses and government shutdowns from the 1980s and 1990s, some veteran lawmakers and experts on the Congressional process are skeptical about the possibility that any debt deal will be reached within that body by August 2. In particular, former Senate Majority Leader Tom Daschle has come out saying the thinks a deal may not arise in time. [NY Times]


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