Speaker of the House John Boehner (R-Ohio) secured enough votes in the House of Representatives Friday to pass a revised version of his debt ceiling plan only to watch the Senate kill the legislation two hours later.
The bill initially passed the House on a 218 to 210 vote with 22 Republicans voting against it, according to CSPAN. Sen. Harry Reid (D-Nev.) indicated earlier in the day that he had enough votes to quash the legislation on a Senate vote.
The Treasury Department
has warned the nation will default on its debt if the debt ceiling isn't raised by Aug. 2.
The plan rejected by the Senate is one of a few versions introduced by Boehner this week. Earlier in the week, Boehner was sent scrambling back to the drawing table when the Congressional Budget Office
released a report saying the Republican plan would only cut budget deficits by $850 billion in the next decade, compared to Sen. Reid's plan which could result in $2.2 trillion in deficit cuts in the next 10 years.
Reid defended the Democrat's plan saying it protects Social Security and Medicare, while raising the ceiling by at least $2.4 trillion. Congress and the president have until Tuesday to approve a plan that will raise the debt ceiling. To date, ratings agencies Standard & Poor's
and Moody's Investors Service
have U.S. debt on a ratings watch.
Earlier today, Sen. Reid urged the parties to reach a bipartisan solution. Analysts issued advisories this week saying the rating agencies could still downgrade U.S. debt if the ceiling plan passes due to the ongoing political wrangling and the length of time it took to get a plan passed.
Write to Kerri Panchuk