GOP debt plan faces close vote in Congress

WASHINGTON - House Republicans are pressing ahead with a vote on a quickly revised plan to stave off an unprecedented government default next week even though the legislation has been stymied by conservative dissent, a White House veto threat and unanimous opposition among Senate Democrats.

As the House prepared to vote on raising the debt limit on Thursday, investors worried that a dysfunctional Congress might remain gridlocked sent stocks plunging. The Dow Jones industrial average fell nearly 200 points and appeared headed for its worst week in nearly a year.

Without legislation in place by Aug 2, administration officials say the Treasury will not be able to pay all the nation's bills, possibly triggering a default that could prove catastrophic for an economy still recovering from the worst recession since the Depression.