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| Seeking Deal to Avert Default, Lawmakers to Meet Obama | Seeking Deal to Avert Default, Lawmakers to Meet Obama |
| (35 minutes later) | |
| WASHINGTON — President Obama on Monday warned lawmakers that the country stood “a good chance of defaulting,” with devastating effects for the economy, if lawmakers were not willing to quickly set aside their differences in the coming hours and days. | |
| Speaking at Martha’s Table, a Washington food bank, the president added pressure to urgent negotiations on Capitol Hill as the Thursday deadline for raising the nation’s borrowing authority approached. | |
| “This week, if we don’t start making some real progress, both the House and the Senate, and if Republicans aren’t willing to set aside their partisan concerns in order to do what’s right for the country, we stand a good chance of defaulting, and defaulting could have” a potentially devastating effect on the economy, Mr. Obama said a few hours before a scheduled meeting with top Democratic and Republican leaders in Congress. “This whole shutdown has been completely unnecessary.” | |
| Mr. Obama said he would urge lawmakers to reopen the government and raise the debt limit. He noted that there had been “some progress” in the Senate toward a deal that could avert a breach of the nation’s debt limit. He said some Republicans recognized that “it’s not tenable, it’s not smart, it’s not good for the American people to let America default.” | |
| But the president expressed skepticism about what could happen in the near term, noting that any deal reached in the Senate would have to be agreed upon by the House, where Republicans are in charge. | |
| “House Republicans continue to think that somehow they can continue to extract concessions by keeping the government shut down or threatening default,” Mr. Obama said. | |
| Senate negotiators on Monday moved toward a deal that would reopen the government through the end of the year, raise the debt ceiling into 2014, start broader budget negotiations and offer only token concessions to Republicans on President Obama’s health care law. | |
| Senate talks were expected to accelerate Monday afternoon, with the aim of sealing an agreement by Tuesday, just two days before the federal government exhausts its borrowing authority. The biggest question is whether bipartisan support in the Senate would be enough to force House Republicans to bring the deal to a vote, given the insistence by some House conservatives that major elements of the health care law needed to be delayed. | Senate talks were expected to accelerate Monday afternoon, with the aim of sealing an agreement by Tuesday, just two days before the federal government exhausts its borrowing authority. The biggest question is whether bipartisan support in the Senate would be enough to force House Republicans to bring the deal to a vote, given the insistence by some House conservatives that major elements of the health care law needed to be delayed. |
| “There are always lots of perils, but there does seem to be a possible path forward,” said Senator Charles E. Schumer of New York, the No. 3 Senate Democrat. | “There are always lots of perils, but there does seem to be a possible path forward,” said Senator Charles E. Schumer of New York, the No. 3 Senate Democrat. |
| Senator Harry Reid of Nevada, the majority leader, emerged early in the afternoon from the office of Senator Mitch McConnell of Kentucky, the Republican leader, to say a deal was not done. | Senator Harry Reid of Nevada, the majority leader, emerged early in the afternoon from the office of Senator Mitch McConnell of Kentucky, the Republican leader, to say a deal was not done. |
| “We’re continuing to work,” he said. “It’s not done yet.” Asked if senators would have something to present to the president Monday afternoon, he responded, “Sure hope so.” | |
| Shortly after Mr. Reid disappeared into the Republican leader’s office, Mr. McConnell’s spokesman came out to address reporters and said, “We are engaged in good-faith negotiations, and those talks will continue.” | |
| Mr. Obama and Vice President Joseph R. Biden Jr. were to meet with top Democratic and Republican leaders in Congress on Monday afternoon, administration officials said. | |
| “With only a few days until the government runs out of borrowing authority, the president will make clear the need for Congress to act to pay our bills and reopen the government,” the official said. “The president will also reiterate our principles to the leaders: we will not pay a ransom for Congress reopening the government and raising the debt limit.” | “With only a few days until the government runs out of borrowing authority, the president will make clear the need for Congress to act to pay our bills and reopen the government,” the official said. “The president will also reiterate our principles to the leaders: we will not pay a ransom for Congress reopening the government and raising the debt limit.” |
| House Republicans worked on a separate track to quickly pass a six-week extension of the government’s statutory borrowing authority. But Republican leaders were pushing significant changes to the health care law, possibly language denying federal subsidies to lawmakers, White House officials and staff members who must buy their health insurance on the Affordable Care Act’s new exchanges. | House Republicans worked on a separate track to quickly pass a six-week extension of the government’s statutory borrowing authority. But Republican leaders were pushing significant changes to the health care law, possibly language denying federal subsidies to lawmakers, White House officials and staff members who must buy their health insurance on the Affordable Care Act’s new exchanges. |
| Senate Democrats and the White House have made it clear that such policy changes will never clear the Senate. | Senate Democrats and the White House have made it clear that such policy changes will never clear the Senate. |
| As they drafted their deal, Senate negotiators in both parties were hoping that House Republican leaders would have no choice but to let a bipartisan agreement struck on the verge of default come to a vote, even if it could only pass with votes from Democrats and a minority of the Republican majority. The deal is likely to include two concessions to Republicans: a two-year delay of a tax on medical devices that helps pay for the health care law, and some tightening of qualifications for subsidized insurance purchases. | As they drafted their deal, Senate negotiators in both parties were hoping that House Republican leaders would have no choice but to let a bipartisan agreement struck on the verge of default come to a vote, even if it could only pass with votes from Democrats and a minority of the Republican majority. The deal is likely to include two concessions to Republicans: a two-year delay of a tax on medical devices that helps pay for the health care law, and some tightening of qualifications for subsidized insurance purchases. |
| But the main sticking points revolve around two dates: when a stopgap spending bill that reopens the government would end, and how far into 2014 a debt ceiling increase would last. Democrats had insisted that the spending measure extend only into mid-November, to force a quick renegotiation of spending for next year. The Democrats’ bottom line, however, is that it ends before Jan. 1, when the next round of automatic spending cuts, known as sequestration, kicks in. The final deal is likely to extend government financing only into December. | But the main sticking points revolve around two dates: when a stopgap spending bill that reopens the government would end, and how far into 2014 a debt ceiling increase would last. Democrats had insisted that the spending measure extend only into mid-November, to force a quick renegotiation of spending for next year. The Democrats’ bottom line, however, is that it ends before Jan. 1, when the next round of automatic spending cuts, known as sequestration, kicks in. The final deal is likely to extend government financing only into December. |
| Republican negotiators were willing to extend borrowing authority to Jan. 31. That is likely to extend further, into February. | Republican negotiators were willing to extend borrowing authority to Jan. 31. That is likely to extend further, into February. |
| Republicans accused Democrats of accepting nothing short of capitulation without offering anything in return. “The Democrats keep moving the goal posts,” Senator Susan Collins of Maine, one of the lead Republican negotiators, said on Sunday. “Decisions within the Democratic conference are constantly changing.” | Republicans accused Democrats of accepting nothing short of capitulation without offering anything in return. “The Democrats keep moving the goal posts,” Senator Susan Collins of Maine, one of the lead Republican negotiators, said on Sunday. “Decisions within the Democratic conference are constantly changing.” |
| Senator John McCain, Republican of Arizona, warned on the CBS News program “Face the Nation” that the Democrats “better understand something.” | Senator John McCain, Republican of Arizona, warned on the CBS News program “Face the Nation” that the Democrats “better understand something.” |
| “What goes around comes around,” he said, “and if they try to humiliate Republicans, things change in American politics.” | “What goes around comes around,” he said, “and if they try to humiliate Republicans, things change in American politics.” |
| A rally on the National Mall on Sunday, led by Senator Ted Cruz, Republican of Texas, and former Gov. Sarah Palin of Alaska, was intended to show that Tea Party activists — supporters of the House Republicans who forced the shutdown over their opposition to the new health care law — were in no mood to give in. Some waved Confederate flags and called for Mr. Obama to be impeached. | A rally on the National Mall on Sunday, led by Senator Ted Cruz, Republican of Texas, and former Gov. Sarah Palin of Alaska, was intended to show that Tea Party activists — supporters of the House Republicans who forced the shutdown over their opposition to the new health care law — were in no mood to give in. Some waved Confederate flags and called for Mr. Obama to be impeached. |
| The dispute may involve debt ceiling technicalities, but at the core of the fight is a more fundamental question: with polls showing that Republicans are carrying the brunt of the blame for the shutdown, can Democrats demand total surrender, or should they offer concessions to complete the deal? | The dispute may involve debt ceiling technicalities, but at the core of the fight is a more fundamental question: with polls showing that Republicans are carrying the brunt of the blame for the shutdown, can Democrats demand total surrender, or should they offer concessions to complete the deal? |
| “You can’t just demand pure capitulation,” said Representative Tom Cole, Republican of Oklahoma. “Negotiations don’t work that way.” | “You can’t just demand pure capitulation,” said Representative Tom Cole, Republican of Oklahoma. “Negotiations don’t work that way.” |