US Senate kills House debt ceiling plan
Updated: 2011-07-30 10:11
(Xinhua)
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WASHINGTON - The US Senate voted Friday to kill a debt ceiling plan put forth by House Speaker John Boehner to avoid a looming debt default crisis less than two hours after the House passed the bill.
The measure was defeated in a 59-41 vote Friday night. The majority of the Senate members believed that the two-step House plan would harm the US fragile economic recovery as it will require another painful debt-limit debate early next year.
Under the House plan outlined by Boehner, a Republican, Congress would immediately raise the federal government's borrowing capacity by $900 billion extending to early next year and cut spending by $917 billion over a decade.
According to the legislation rewritten overnight, the second tranche of debt limit increase next year would be contingent on Congress approving a balanced budget amendment to the Constitution and sending it to the states for ratification.
Senate Democratic Leader Harry Reid, a Democrat, is expected to move forward with a different approach that aims to get enough votes from both parties to pass Congress before an August 2 deadline.
The Democratic plan will grant the US government borrowing authority extended long enough to reach the end of 2012 when the next presidential election is over.