Initial Reaction in House…Seems Cool By Rich Lowry From a Republican aide who would know on the sentiment regarding the contingency plan: We, the House, hate this and it will not move. It would basically mean that the President only needs 1/3 of the either body to raise the debt limit, meaning that we would cede our majority status in the House. Can you imagine how insane this would make the grass roots/tea party—we have the numbers to stop an increase, but we completely give up and let Dems uphold a veto with a 1/3 vote. No way. ||||| Senate Minority Leader Mitch McConnell Addison (Mitch) Mitchell McConnellDemocrats seek to turn Kavanaugh anger into votes Republicans seize on Kavanaugh confirmation going into midterms McConnell: 'Simply inaccurate' that Senate is broken after Kavanaugh fight MORE (R-Ky.) on Tuesday laid out a plan to avoid a national default and put responsibility for increasing the debt limit squarely on President Obama. 
 
 McConnell’s proposal would authorize Obama to raise the debt ceiling in three steps, and would not require any corresponding spending cuts. 
 
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 The proposal met immediate, fierce criticism from grassroots conservatives, who are furious at the lack of firm spending cuts, but House GOP leaders and the White House held their fire. 
 
 Under the legislation, Congress could only block Obama’s requests by passing resolutions of disapproval, which would have to be supported by two-thirds of both the Senate and House to overcome an expected presidential veto. 
 
 McConnell described his proposal as a “last choice option” to avoid a national default if Congress fails to reach a compromise to raise the debt limit by Aug. 2. 
 
 “It’s extremely important that the country reassure the markets that default is not an option and reassure Social Security recipients and families of military veterans that default is not an option,” McConnell said. 
 
 The proposal was briefly discussed at a White House meeting on Tuesday. Obama and congressional leaders are scheduled to meet again Wednesday afternoon. 
 
 McConnell’s plan would benefit Republicans politically by placing the responsibility for raising the debt limit almost entirely with Obama. It would allow Republicans in both chambers to vote en masse against it without causing a national economic catastrophe. 
 
 It could also hurt Senate Democrats by forcing them to support several hikes to the debt ceiling ahead of an election in which they must defend 23 seats, though Republicans expect centrist Democrats would be able to vote against the requests, given the high threshold for overriding a veto. 
 
 The problem with McConnell’s plan for Republicans is the prospect of a conservative backlash because it would allow Obama to raise the debt ceiling without having to agree to deep spending cuts. 
 
 In a possible sign of trouble to come, members of the Senate Tea Party Caucus left a GOP lunch early on Tuesday where McConnell presented his proposal, and declined to comment on the plan. 
 
 Other GOP leaders presented the proposal with McConnell, including Sens. Jon Kyl (Ariz.), Lamar Alexander Andrew (Lamar) Lamar AlexanderGOP senator: If Kavanaugh wasn't angry during testimony, 'people would be very suspicious' How Kavanaugh got the votes GOP confident Collins will back Kavanaugh MORE (Tenn.) and John Barrasso John Anthony BarrassoOvernight Energy — Presented by Southern Utah Wilderness Alliance — Judge upholds Obama's marine monument | GOP lawmakers worried states using water rule to block fossil fuels | Lawmakers press Trump ahead of ethanol decision GOP senators ask EPA to block states that have 'hijacked' rule to stop fossil fuel production Senate sends bill regulating airline seat sizes to Trump MORE (Wyo.). 
 
 Sen. Rand Paul Randal (Rand) Howard PaulRepublicans come full circle with Supreme Court battle to the end Senate sends bill regulating airline seat sizes to Trump Sasse: I encouraged Trump to pick someone other than Kavanaugh MORE (R-Ky.) said he preferred to focus on what he supports, namely the “cut, cap and balance” plan that would require Congress to pass a balanced-budget amendment before approving an increase in the debt limit. 
 
 Conservative activists and one GOP candidate for president immediately denounced the legislation. 
 
 FreedomWorks, a Tea Party-affiliated group, tweeted: “Sen. McConnell thinks cutting funding is too hard. Help him find his spine!” 
 
 Former House Speaker Newt Gingrich (R-Ga.), a presidential candidate, bashed it as “an irresponsible surrender to Big Government, big deficits and continued overspending.” 
 
 Grover Norquist of the Americans for Tax Reform said McConnell’s plan could be a smart strategy because it would force Obama to put in writing what spending cuts he would support. To the extent it does this and forces Senate Democrats to vote on an Obama plan, it is a good one, he said in an interview. 
 
 Asked if House Speaker John Boehner John Andrew BoehnerTrump and son signal support for McCarthy as next Speaker Under attack: Because we don’t vote Republican Democrats should be careful what they wish for MORE (R-Ohio) had OK’d the Senate GOP’s fallback plan, McConnell told reporters Tuesday that he had “spoken about it with others.” 
 
 Boehner John Andrew BoehnerTrump and son signal support for McCarthy as next Speaker Under attack: Because we don’t vote Republican Democrats should be careful what they wish for MORE appeared open to the McConnell plan in an interview after the meeting with Fox News. “I understand Mitch’s frustrations, because we’re all frustrated by where we are,” the Speaker said. “I think everybody believes there needs to be a backup plan if we are unable to come to an agreement. And frankly I think Mitch has done good work.” 
 
 Some Republican aides in the House said McConnell’s proposal could not be passed. 
 
 “Why would we give the president the power to bypass Congress on this? I think McConnell threw it out to shake things up, as I don’t see how it could ever pass the House,” said one House GOP aide. 
 
 Senate Majority Leader Harry Reid Harry Mason ReidRepublicans come full circle with Supreme Court battle to the end Fate of Republican Party is tied to Kavanaugh — so don't flake on us The Senate strikes back with the Flake flip MORE (D-Nev.), however, said he was willing to consider McConnell’s proposal. 
 
 “I’m willing to look at this, and I don’t, in any way, disparage what Sen. McConnell’s come up with,” Reid said. “He and I have had a number of meetings over the last few weeks, talking about the concern we both have.” 
 
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 Administration officials estimate they’ll need to raise the debt limit by about $2.5 trillion to take them into the late winter or spring of 2013, when Republicans could control both chambers of Congress and perhaps the White House as well. 
 
 A Senate Republican leadership aide said the McConnell plan would force Obama to ask the Congress three times to raise the debt limit and would require the president to recommend hundreds of billions in spending cuts. 
 
 The first request, expected later this month, must be accompanied by $700 billion in recommended spending cuts. The second and third requests, coming in the fall of 2011 and summer of 2012, would be matched with $900 billion in recommended cuts. But, to the dismay of conservatives, there’s no guarantee the cuts would pass Congress or survive a veto. 
 
 Public polling shows more people oppose raising the debt limit than support it and Republican strategists believe they now have leverage on the issue. But GOP leaders think public opinion could shift quickly if Congress fails to raise the debt limit. 
 
 “Democrats have the leverage if we have to pay the Saudi royal family the money we owe them and granny doesn’t get her check,” said a Senate GOP aide. 
 
 Obama launched a subtle pre-emptive attack Tuesday by warning that he could not guarantee that Social Security checks would be sent on Aug. 3, the day after the Treasury Department said it would run out of money to pay U.S. bills. 
 
 Economists have warned a default on the debt would send the stock market plunging, boost interest rates and make mortgages, auto loans and credit card payments more expensive. 
 
 Business leaders, who are traditionally strong allies of the GOP, have grown impatient. Several major business groups, including the U.S. Chamber of Commerce, the Business Roundtable and the National Association of Manufacturers, sent a letter Tuesday to Obama and lawmakers urging them to set partisan differences aside and reach a deal. 
 
 -- Erik Wasson contributed to this report. 
 
 -- Originally published at 3:07 p.m. and updated at 8:55 p.m. ||||| Desperate to get out of the political box they helped to create, Senate Republicans are actively pursuing a new plan under which the debt ceiling would grow in three increments over the remainder of this Congress unless lawmakers approve a veto-proof resolution of disapproval. 
 
 In effect lawmakers would be surrendering the very power of approval that the GOP has used to force the debt crisis now. But by taking the disapproval route, Republicans can shift the onus more onto the White House and Democrats since a two-thirds majority would be needed to stop any increase that President Barack Obama requests. 
 
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 “It gives the president 100 percent of the responsibility for increasing the debt limit if he chooses not to have any spending reductions,” Tennessee Sen. Lamar Alexander, the Republican Conference chairman, told reporters Tuesday. 
 
 How the plan will sit with House Republicans is unclear. But it offers an escape valve for those in the Senate GOP who fear that if the current crisis persists they will be forced to accept some tax revenue increases as part of any settlement. 
 
 Indeed with the August 2 deadline approaching, the new option testified to the darkening outlook in Washington and a growing concern among Senate leaders in both parties that the debt debate has spun out of control. 
 
 Minority Leader Mitch McConnell (R-Ky.) acknowledged at a news conference Tuesday that the new plan would not ensure Republicans would get the trillions in spending cuts they’ve been seeking, and he noted that his party has become “increasingly pessimistic” that it can reach a debt deal with Obama. 
 
 This is a “last-choice option,” McConnell (R-Ky.) told reporters before heading to the White House for another round of talks. “If we are unable to come together, we think it is extremely important the country reassure the markets that default is not an option and reassure Social Security recipients and military veterans that default is not an option.” 
 
 McConnell, who has watched the in-fighting among House GOP leaders, is helping to shepherd the proposal, which was discussed at the Senate Republicans’ weekly caucus meeting and during White House talks on Tuesday. 
 
 “I think everybody believes there needs to be a backup plan if we are unable to come to an agreement,” House Speaker John Boehner (R-Ohio) said during an appearance on Fox News. “And frankly, I believe Mitch has done good work.” 
 
 But conservatives panned the McConnell plan. Former House Speaker Newt Gingrich, a GOP presidential candidate, described it in a tweet as “an irresponsible surrender to big government, big deficits and continued overspending. I oppose it.” 
 
 And when asked if he would back the proposal, freshman Sen. Mike Lee (R-Utah) told POLITICO: “Absolutely not. Never.” 
 
 “We have no business raising the debt limit without fundamentally changing the way we spend money in this town,” he said. 
 
 McConnell will need Democratic help to enact the required authorizing legislation. He has already consulted with Majority Leader Harry Reid on the idea and Reid is pursuing his own option of creating a joint deficit reduction committee able to force an up-or-down vote without amendments, akin to past base closing commissions. ||||| 
 
 The debt deal Mitch McConnell is offering is confusing a lot of people, so here’s the core of it: Until now, Republicans have wanted a policy payoff for permitting President Obama and the Democrats to raise the debt ceiling. McConnell is proposing to replace that with a political payoff. That’s it. That’s the deal. The question is why House Republicans would go for it. 
 
 The process McConnell is proposing would go like this: First, Obama would submit a request for a $700 billion increase in the debt ceiling, along with a nonbinding proposal to cut spending. That would automatically trigger a $100 billion increase in the debt ceiling to give Congress time to consider the request. Congress could then vote to either approve or disapprove of the president’s request. If they disapprove of it, however, Obama could veto their disapproval, and unless two-thirds of both chambers voted to overturn his veto — a virtually unthinkable outcome given that Democrats control the Senate — he could raise the debt ceiling anyway. 
 
 The same thing would happen, albeit in $900 billion increments rather than $700 billion increments, in fall 2011 and summer 2012. Take it all together, and Republicans would almost completely forfeit their leverage over the debt ceiling. In return, they’d get to make Democrats vote repeatedly to first raise the debt ceiling and then to “approve” of raising the debt ceiling. As Sen. Lamar Alexander (R-Tenn.) said, this “gives the president 100 percent of the responsibility.” 
 
 Or, to put it differently, 100 percent of the blame. Raising the debt ceiling is unpopular. That’s part of why House Republicans are demanding such massive concessions in return for doing it. But McConnell, who leads the Senate minority and wants to lead the Senate majority in 2013, would not have to vote for any increases in the debt ceiling, nor would his members. That’s why this appeals to him: It would force Senate Democrats to repeatedly vote to raise the debt ceiling, and he hopes that would make it easier to defeat them in the next election. As David Corn described it, the message to the president is: “You drive. We’ll carp.” 
 
 But perhaps I give McConnell too little credit, and the Kentucky Republican is simply terrified that Republicans and Democrats really won’t come to an agreement on the debt ceiling and he’s desperately searching for a way past the gridlock. If so, it’s a bit late. 
 
 House Republicans, who already hold the majority, can’t possibly accept this deal. It would mean they have to take a vote to hand power on the debt ceiling over to the White House. “We, the House, hate this and it will not move,” a House GOP aide told the National Review. “It would basically mean that the president only needs one third of either body to raise the debt limit, meaning that we would cede our majority status in the House. Can you imagine how insane this would make the grass roots/tea party — we have the numbers to stop an increase, but we completely give up and let Dems uphold a veto with a one-third vote. No way.” Speaker John Boehner’s spokesman Michael Steele, meanwhile, said, “the Speaker shares the Leader’s frustration,” but stopped well short of saying he shares his solution. 
 
 Nor is it likely to be popular among conservative Republicans in the Senate. One anonymous aide told the Huffington Post’s Jon Ward that the “McConnell plan is a full-surrender, white-flag approach.” 
 
 My guess is McConnell is about to suffer a serious backlash from his base. As much as the Senate minority leader’s political incentives might differ from those of the speaker of the House, his ideological incentives are supposed to be the same. And if you believe, as most Republicans do, that the debt ceiling offers a generational opportunity to extract huge concessions from the Democrats, then walking away from that leverage simply isn’t an option, and any member of the Republican leadership who proposes to do so has to be seen as intensely suspect.
– Another day, another round of meetings and threats, and still no deal on the debt ceiling. But the big news looks to be a surprise "backup plan" from Mitch McConnell that would give President Obama unprecedented power to raise the debt ceiling by $2.4 trillion in three installments through the end of his term, reports Politico. Congress could theoretically reject the separate requests, but Obama's veto power makes it a virtual certainty that all would go through. (The Hill has more details.) McConnell said he reluctantly offered the plan to give the markets confidence that the US would avoid a default if no other deal is reached. Republicans would be giving up leverage but getting a "political payoff" in return, writes Ezra Klein at the Washington Post. Obama and Democrats would get "100% of the blame" for raising the ceiling, and no Republican would have to vote in favor. It's not clear yet whether the White House or even the GOP rank-and-file will go along, however. The National Review quotes a Republican aide in the House who thinks it will never fly because it means giving up too much power.