With the deadline to reach a debt ceiling agreement just two days away, congressional leaders and the White House are mulling parts of a tentative deal that would extend the debt limit through next year.
The framework of the emerging deal to raise the nation’s debt ceiling calls for up to $2.8 trillion in total deficit reduction over the next decade, two sources familiar with the negotiations told CNN late Saturday night.
The plan, parts of which are still being negotiated by the White House and bipartisan congressional leaders, would allow the debt ceiling to be raised by enough to last at least through the end of 2012.
The debt limit would be increased in two stages, both of which would occur automatically — a key Democratic demand that would prevent a repeat of the current crisis before the next election.
The agreement includes upfront spending cuts in the range of roughly $1 trillion, the sources said. A special congressional committee would recommend additional spending reductions of up to $1.8 trillion no later than Thanksgiving.
If Congress fails to approve the recommended cuts by late December, automatic, across-the-board cuts — including both defense and Medicare — would take effect.
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Article courtesy cnn.com