This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/world-us-canada-26146667

The article has changed 7 times. There is an RSS feed of changes available.

Version 1 Version 2
Republicans agree to 'clean' rise in US borrowing limit House passes increase in US borrowing limit
(about 2 hours later)
The US House of Representatives is set to pass a "clean" increase in the US government's debt limit, after Republican efforts to extract concessions from the Democrats failed. The US House of Representatives has passed an increase in the government's debt limit, after the Republicans gave up on their attempt to win concessions from the Democrats in return.
Republican House Speaker John Boehner has scheduled a vote on a bill to raise the $17.2tn (£10.4tn) limit for a year. The House voted 221-201 to waive the $17.2tn (£10.4tn) debt limit for a year, with only 28 Republicans joining most of the Democrats.
Few in his caucus are expected to back it, forcing him to rely on the minority Democrats to pass it. Officials had said the US could reach its debt limit by the end of February.
Officials had warned the US could reach its debt limit by the end of February. The White House and others had warned of calamity if the US defaulted.
The rise will enable the US government to borrow money to fund its budget obligations and debt service. The US government will run a budget deficit of about $514bn in its 2014 fiscal year. Refusal to negotiate
Many House Republicans had hoped to use their ability to block an increase in the US government's borrowing limit to win policy concessions from President Barack Obama and the Democrats who control the Senate. The bill, when signed into law by President Barack Obama, will enable the US government to borrow money to fund its budget obligations and debt service.
In the current and past quarrels over the debt limit, the Republican Party's wish-list has included extensive budget cuts, measures that would repeal or undermine Mr Obama's signature healthcare reform, a proposal to force Mr Obama to approve the Keystone XL oil pipeline from Canada, a repeal of recent cuts to pensions for working-age military retirees, and more. The US government will run a budget deficit of about $514bn in its 2014 fiscal year.
The Republicans hold a majority in the House, and many had hoped to leverage their ability to block an increase in the government's borrowing limit to win policy concessions from Mr Obama and the Democrats who control the Senate.
In the current and past debt limit fights, the Republican Party's wish-list has included extensive budget cuts, measures that would repeal or undermine Mr Obama's signature healthcare reform, a proposal to force Mr Obama to approve the Keystone XL oil pipeline from Canada, a repeal of recent cuts to pensions for working-age military retirees, and more.
As in the last major Washington DC budget brawl, in September and October, Mr Obama and the Democrats said they would refuse to negotiate over the borrowing limit, arguing raising the limit amounted to the US government making good on spending it had already undertaken.As in the last major Washington DC budget brawl, in September and October, Mr Obama and the Democrats said they would refuse to negotiate over the borrowing limit, arguing raising the limit amounted to the US government making good on spending it had already undertaken.
They demanded a "clean" rise. 'Obama's debt ceiling'
Not enough votes They demanded a "clean" bill that would raise the debt ceiling without enacting additional policy measures.
On Tuesday, Mr Boehner said he would be among only a few Republicans to vote aye on the bill. The vote was scheduled for Tuesday evening because of concerns about a heavy snowstorm forecast to hit the Washington area later in the week. "We'll let his party give him the debt ceiling increase that he wants," Mr Boehner said of Mr Obama ahead of Tuesday's vote.
"We'll let his party give him the debt ceiling increase that he wants," Mr Boehner said of Mr Obama. He said he expected all Democratic House members to back the rise.
"We'll put a minimum number of [Republican] votes up to get it passed.""We'll put a minimum number of [Republican] votes up to get it passed."
The Republican House leadership, often at odds with its restive caucus, floated a plan on Monday that would tie the debt limit increase to restoring a cut in pensions for working-age military retirees that was enacted as a money-saving measure in a recent budget.The Republican House leadership, often at odds with its restive caucus, floated a plan on Monday that would tie the debt limit increase to restoring a cut in pensions for working-age military retirees that was enacted as a money-saving measure in a recent budget.
But they found they lacked the Republican votes to pass that, as conservative members balked.But they found they lacked the Republican votes to pass that, as conservative members balked.
A separate vote is planned on that issue. The Senate has already passed a bill to restore the cuts.A separate vote is planned on that issue. The Senate has already passed a bill to restore the cuts.
'Boost for confidence''Boost for confidence'
Republicans hold a majority in the House but need almost all their members to vote affirmatively to pass any legislation. The White House welcomed Mr Boehner's decision to hold a vote on a debt limit rise.
"When you don't have 218 votes, you have nothing," Mr Boehner said. "We've seen that before and we see it again."
The White House welcomed Mr Boehner's decision to hold a vote on a clean debt limit rise.
"I hope the tactic of threatening default for budget debates is over, off the table and never to happen again," said Gene Sperling, director of the White House's National Economic Council."I hope the tactic of threatening default for budget debates is over, off the table and never to happen again," said Gene Sperling, director of the White House's National Economic Council.
"And if so that would, I think, be a boost for confidence and investment in the US.""And if so that would, I think, be a boost for confidence and investment in the US."
Treasury Secretary Jack Lew had estimated the US could use accounting measures to avoid default only until 27 February.Treasury Secretary Jack Lew had estimated the US could use accounting measures to avoid default only until 27 February.
Soon, the US treasury will begin issuing refunds to Americans who overpaid income taxes in 2013, which could strain the government's cash reserves.Soon, the US treasury will begin issuing refunds to Americans who overpaid income taxes in 2013, which could strain the government's cash reserves.