After another day of heated rhetoric on both sides about the budget, Republicans suddenly on Tuesday afternoon floated a plan that could lead to an increase in the nation's debt limit, without the Congress voting directly to approve it.
The offer came from Senate GOP Leader Mitch McConnell, who told reporters in the Capitol that the plan was a "last choice option," in case no debt limit deal is agreed on in coming weeks.
"We think it's extremely important that the country reassure the markets that default is not an option," McConnell said.
The plan is somewhat complicated - but would work like this:
- Congress would first pass a new law that authorizes the President to approve an increase in the debt limit in three steps before the 2012 elections - currently, the Congress approves debt limit changes.
- President Obama would have to send up budget cuts that matched the level of debt limit increase, but it would not require their immediate approval
- Lawmakers could then vote on a "Resolution of Disapproval" in order to block any such increase in the debt limit.
- The President could then veto that "Resolution of Disapproval," if it gained a majority in both houses of Congress
- Congress would then need a two-thirds supermajority to override that veto, or the debt limit increase would automatically occur.
- The plan would allow for a debt limit increase of between $700-900 billion in three distinct requests by the President
