Tea party debt plan takes center stage

WASHINGTON (AP) — The next step in the wrangling over how to increase the government borrowing authority is to let the tea party forces in the House try it their way.

A Republican plan known as "cut, cap and balance" is set for a House vote on Tuesday. It would allow a $2.4 trillion increase in the debt limit, but on the condition that more than $100 million is immediately cut from the next year's budget and Congress adopt a constitutional amendment requiring a balanced budget.

The approach is considered to have no chance of passing the Senate and reaching President Barack Obama's desk. A separate effort by Senate Republicans to adopt a balanced budget amendment also appears doomed to fail.

Meanwhile, a proposal by Senate Minority Leader Mitch McConnell remains alive in the background. It would give Obama the power to order a $2.5 trillion increase in the debt limit, enough to keep the government afloat until 2013 unless both House and Senate override him by veto-proof margins.

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126-w-37-(Tim Maguire, AP correspondent, with White House Budget Director Jack Lew and Senator John Kyl, R-Ariz.)--The so called grand deal may still be an option as the White House and Congress continue work on reducing federal deficits ahead of raising the national debt ceiling. AP correspondent Tim Maguire reports. (17 Jul 2011)

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124-a-09-(Senator Jon Kyl, R-Ariz., in interview)-"harm our economy"-GOP Senator Jon Kyl says the GOP won't agree to the big deal that President Barack Obama wants if it includes tax hikes. COURTESY: ABC's 'This Week' ((mandatory on-air credit)) (17 Jul 2011)

<> 00:09 "harm our economy"

111-a-14-(Senator Jim DeMint, R-S.C., in interview)-"the president's proposed"-GOP Senator Jim DeMint says the credit rating agencies will lower America's rating if Congress approves what President Barack Obama is suggesting.COURTESY: NBC's 'Meet the Press' ((mandatory on-air credit)) (17 Jul 2011)

<> 00:14 "the president's proposed"

110-q-10-(Senator Jim DeMint, R-S.C., in interview)-"for our country"-GOP Senator Jim DeMint was asked why the GOP can't compromise on a debt ceiling deal.COURTESY: NBC's 'Meet the Press' ((mandatory on-air credit)) (17 Jul 2011)

<> 00:10 "for our country"

123-a-11-(Jack Lew, head of the White House budget office, in interview)-"get it done"-President Barack Obama's budget director Jack Lew says it's a shame that the debt ceiling deal comes down to the last minute.COURTESY: ABC's 'This Week' ((mandatory on-air credit)) (17 Jul 2011)

<> 00:11 "get it done"

122-a-13-(Jack Lew, head of the White House budget office, in interview)-"the last minute"-President Barack Obama's budget director Jack Lew says the debt ceiling will be raised by August 2nd. COURTESY: ABC's 'This Week' ((mandatory on-air credit)) (17 Jul 2011)

<> 00:13 "the last minute"

125-a-07-(Senator Jon Kyl, R-Ariz., in interview)-"on the president"-GOP Senator Jon Kyl says he's not sure what kind of deal will be made but adds the U.S. will not default. COURTESY: ABC's 'This Week' ((mandatory on-air credit)) (17 Jul 2011)

<> 00:07 "on the president"

109-a-11-(Senator Dick Durbin, D-Ill, in interview)-"that are outrageous"-Democratic Senator Dick Durbin says he can't believe there are members of Congress that don't think it's imperative that the debt ceiling is raised. COURTESY: NBC's 'Meet the Press' ((mandatory on-air credit)) (17 Jul 2011)

<> 00:11 "that are outrageous"

108-a-09-(Senator Dick Durbin, D-Ill, in interview)-"in defecit reduction"-Democratic Senator Dick Durbin says President Barack Obama has offered Congress a solid plan.COURTESY: NBC's 'Meet the Press' ((mandatory on-air credit)) (17 Jul 2011)

<> 00:09 "in defecit reduction"