GOP Offers Debt Ceiling Contingency Plan

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ROBERT SIEGEL, host:

From NPR News, this is ALL THINGS CONSIDERED. I'm Robert Siegel.

MICHELE NORRIS, host:

And I'm Michele Norris.

For a couple of days now, we've been hearing that Republican leaders had a contingency plan if talks to raise the debt ceiling failed. Today, we found out what it was from Senate Minority Leader Mitch McConnell. It would allow the president to raise the debt ceiling on his own, but, as you might have guessed, it's complicated.

NPR's David Welna explains this latest twist.

DAVID WELNA: Republican leaders have been demanding that projected deficits be reduced by the same amount the debt ceiling gets raised, but their talks with Democratic colleagues and President Obama have gotten hung up over the GOP's refusal to include any of the increased tax revenues that Democrats insist be part of a debt reduction package.

This morning, House Speaker John Boehner appeared to wash his hands of any responsibility for raising the debt ceiling, which only Congress can do. Instead, Boehner singled out President Obama.

Representative JOHN BOEHNER (Republican, Ohio; House Speaker): This debt limit increase is his problem, and I think it's time for him to lead by putting his plan on the table, something that the Congress can pass.

WELNA: Meanwhile, in the Senate, Republican leader Mitch McConnell appeared to throw in the towel for a mutually agreed-upon solution for the debt impasse.

Senator MITCH McCONNELL (Republican, Kentucky; Senate Minority Leader): I have little question that as long as this president is in the Oval Office, a real solution is probably unattainable. This was not an easy decision for me.

WELNA: Dick Durbin, the Senate's number two Democrat, then took to the floor to urge his GOP colleagues not to abandon the deficit reduction talks, as they've done before.

Senator DICK DURBIN (Democrat, Illinois): The Republican Party has become the walk-away-Renee party when it comes to this budget deficit. We've got to keep them in the room.

WELNA: After huddling over lunch with his fellow Republicans, Senate Minority Leader McConnell made clear he had other plans. McConnell called a news conference to unveil what he called a sort of backup plan for raising the debt ceiling by the Treasury Department's August 2nd deadline.

Sen. McCONNELL: I would advocate that we pass legislation giving the president the authority to request of us an increase in the debt ceiling that would take us pass the end of his term.

WELNA: In effect, Congress would vote to transfer its own authority to raise the debt ceiling over to the president. McConnell said lawmakers could then respond to the president's request for raising the debt ceiling with what's known as a resolution of disapproval.

Sen. McCONNELL: That resolution of disapproval, if passed, would then go to the president. He could sign it, or he could veto it. Presumably, he would veto it. If that were the case, that veto would be sustained by one-third plus one in either the House or the Senate.

WELNA: And with that veto sustained by a minority, the debt ceiling would be raised in three stages worth a total of two and a half trillion dollars. This could conceivably spare Republicans from being on record as voting to raise the debt ceiling and still avoid default.

Stan Collender is a former House and Senate budget committee staffer now with Qorvis Communications.

Mr. STAN COLLENDER (Qorvis Communications): What I see here is a little bit of desperation on the part of Republicans. I mean, they've painted themselves into a very difficult political corner saying no, no, no, but we also want to raise the debt ceiling. So this would be a way to get the debt ceiling raised without their having to do any of the things that they don't want to do.

WELNA: Senate Majority Leader Harry Reid appeared to welcome McConnell's proposal.

Senator HARRY REID (Democrat, Nevada; Senate Majority Leader): I'm not about to trash his proposal. It's something that I will look at. I will look at it intently and, I think, any new ideas I'm willing to look at.

WELNA: And that may be because it's a plan that could also spare many Senate Democrats up for re-election next year from a vote they'd rather not make to raise the debt ceiling.

David Welna, NPR News, the Capitol.

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