Bipartisan budget talks to avert a potential fiscal calamity picked up steam Monday, as leaders in both parties sought to cut an accord to avoid a debt default by early November.
Several sources familiar with the discussions said that the House was looking at moving a debt limit increase through the 2016 elections, taking the issue off the table for this Congress. As part of the fiscal package, lawmakers would consider a budget deal that would raise budget caps and include corresponding cuts to offset the higher spending, sources said.
The deal is not final yet, and could ultimately change. But the discussions are moving quickly since House Speaker John Boehner wants to wrap up the divisive fiscal issues before he hands the gavel on Thursday to Rep. Paul Ryan, R-Wisconsin, who is expected to win House leadership elections.
It’s still uncertain whether the two sides — particularly in the House — could win over the rank-and-file and push the matter to final passage. But if House Minority Leader Nancy Pelosi agrees to back the package, and Boehner can deliver a large segment of his conference, it could be enough to overcome opposition from conservative factions. Two sources said Monday that Boehner and Pelosi were having “productive” discussions.
While details are still sketchy, the possible deal could give both sides cover. The White House has said that the debt limit should not have any corresponding budget cuts and should pass without restrictions in order to meet the November 3 deadline to avoid a possible default.
But if a budget deal moved at the same time, Republicans could point to the cuts Democrats agreed to in order to argue they were winning concessions from the White House. One source familiar with the discussions said that the two sides were looking at the possibility of a two-year budget deal, effectively decreasing the chances of a shutdown December 11.
Boehner was expected to discuss the matter with his leadership team later Monday afternoon.