White House Strikes Tentative Debt Ceiling Deal With Republicans

By Alan with comments July 30, 2011 22:58

Here’s the framework:

• Debt ceiling increase of up to $2.8 trillion
• Spending cuts of roughly $1 trillion
• Special committee to recommend cuts of $1.8 trillion (or whatever it takes to add up to the total of the debt ceiling increase)
• Committee must make recommendations before Thanksgiving recess
• If Congress does not approve those cuts by late December, automatic across-the-board cuts go into effect, including cuts to Defense and Medicare.