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US House set for key debt vote on Republican bill US House set for key debt vote on Republican bill
(about 1 hour later)
  
A revised Republican bill to raise the US debt ceiling, cut spending and avert a federal default is set for a crunch House of Representatives vote later. A Republican bill to raise the US debt ceiling, cut spending and avert default on US debt is set for a crunch House of Representatives vote later.
But House Speaker John Boehner's bill faces a conservative revolt, unanimous opposition by Senate Democrats and a White House veto threat.But House Speaker John Boehner's bill faces a conservative revolt, unanimous opposition by Senate Democrats and a White House veto threat.
Republicans hold 240 of the 433 votes to be cast, and need 217 of their members to back the bill to pass it. Ahead of the vote, Republicans challenged Democrats to back the bill or take political blame for default.
Mr Boehner told dissenting colleagues on Wednesday: "Get your ass in line." Congress must raise the US debt limit by a deadline of next Tuesday.
'Untenable situation'
The US Treasury has warned the government will run out of money to pay all its bills unless a $14.3tn (£8.7tn) borrowing limit is increased by next Tuesday.The US Treasury has warned the government will run out of money to pay all its bills unless a $14.3tn (£8.7tn) borrowing limit is increased by next Tuesday.
A vote on Mr Boehner's bill was tentatively scheduled for 17:45 local time (21:45 GMT).
Republicans hold 240 of the 433 votes to be cast, and need 217 of their members to back the bill to pass it.
Mr Boehner and his lieutenants have been whipping restive members of the House rank and file - including some who oppose lifting the debt limit under any circumstances - to support the plan.
Mr Boehner's plan would trim $917bn from the US budget deficit over 10 years and raise the debt limit by up to $900bn.Mr Boehner's plan would trim $917bn from the US budget deficit over 10 years and raise the debt limit by up to $900bn.
President Barack Obama supports another plan by top Senate Democrat Harry Reid, which would cut $2.2tn from deficits, and raise the debt ceiling by $2.7tn.President Barack Obama supports another plan by top Senate Democrat Harry Reid, which would cut $2.2tn from deficits, and raise the debt ceiling by $2.7tn.
But that is thought unlikely in its current form to pass the Republican-controlled House.But that is thought unlikely in its current form to pass the Republican-controlled House.
Both Republican and Democratic plans underwent revisions on Wednesday after congressional budget analysts said the savings advertised by each one had been overstated.
The Boehner and Reid plans overlap in key ways - trimming spending over 10 years, shunning President Obama's call for tax increases on the wealthy and creating special lawmaker committees to craft future cuts.The Boehner and Reid plans overlap in key ways - trimming spending over 10 years, shunning President Obama's call for tax increases on the wealthy and creating special lawmaker committees to craft future cuts.
But Mr Boehner's approach would force another debt-limit showdown during next year's presidential campaign, something Mr Obama has fiercely opposed.But Mr Boehner's approach would force another debt-limit showdown during next year's presidential campaign, something Mr Obama has fiercely opposed.
Endgame?
Senate Majority Leader Reid's plan would see the ceiling lifted until after the November 2012 elections.Senate Majority Leader Reid's plan would see the ceiling lifted until after the November 2012 elections.
"No Democrat will vote for a short-term Band-Aid that would put our economy at risk and put the nation back in this untenable situation a few short months from now," Mr Reid said on Thursday.
Endgame?
Senior Republicans goaded Democrats, saying they would have to accept responsibility for the economic consequences of default if they did not pass the Republican plan.
"It's inconceivable to me that the president would actually follow through on this [veto] threat," Senate Republican Leader Mitch McConnell, said on Thursday. He accused Democrats of "playing with fire".
Analysts say success in the House for the Boehner plan would lend it legitimacy, but it would not be able to pass in the Senate.Analysts say success in the House for the Boehner plan would lend it legitimacy, but it would not be able to pass in the Senate.
The most probable scenario is thought to be a last-minute scramble for a compromise and razor-edge votes in both chambers, with the high-stakes game of legislative brinkmanship expected to go continue all weekend. The most probable scenario is thought to be a last-minute scramble for a compromise and razor-edge votes in both chambers, with the high-stakes game of legislative brinkmanship expected to continue all weekend.
Mr Reid hinted of a compromise as he told reporters on Wednesday: "Magic things can happen here in Congress in a very short period of time under the right circumstances."
Senate Finance Committee Chairman Max Baucus predicted an endgame that would see lawmakers modify Mr Reid's bill to make it more appealing to Republicans.Senate Finance Committee Chairman Max Baucus predicted an endgame that would see lawmakers modify Mr Reid's bill to make it more appealing to Republicans.
Washington hit its debt ceiling in May, but has used accounting adjustments, as well as higher-than-expected tax receipts, to continue operating.Washington hit its debt ceiling in May, but has used accounting adjustments, as well as higher-than-expected tax receipts, to continue operating.
On Wednesday, Mr Boehner and his lieutenants met restive members of the House rank and file - including some who oppose lifting the debt limit under any circumstances - to persuade them to back his plan.
Republican Senator John McCain, the party's 2008 presidential nominee, took to the Senate floor on Wednesday to lambast some freshman House Republicans' stance on the debt issue as "worse than foolish" and "bizarro".
In recent decades, the US Congress has increased the government's borrowing authority dozens of times as a matter of routine, but this year newly elected conservative Republicans have demanded steep cuts to the budget deficit as the price of an increase.In recent decades, the US Congress has increased the government's borrowing authority dozens of times as a matter of routine, but this year newly elected conservative Republicans have demanded steep cuts to the budget deficit as the price of an increase.