Senate Majority Leader Harry Reid expressed optimism that a deal to raise the nation’s debt limit would present itself in the coming hours, noting that details of the plan still require additional attention.
“After speaking to Republican Leader Mitch McConnell this morning, I would say we are both cautiously optimistic we will reach a conclusion soon,” Mr. Reid said on the Senate floor.
“There are many elements to be finalized and there is still a distance to go before any arrangement can be completed,” Mr. Reid added.
Mr. Reid, who put forward a debt plan proposal earlier in the day, now faces the task of pushing forward a compromise that can pass the House and the Senate. The Senate voted 50 to 49 Sunday to block Mr. Reid’s plan to raise the debt-ceiling, falling short of the 60 votes necessary to overcome a Republican filibuster.
With less than three days before the nation faces the risk of default, the Treasury Department warned that contingency plans are already in the works in the event Congress fails to pass a measure in time.
“While there are contingency plans being done, there are no good options,” the White House said Sunday. “They are all very, very dire and that’s why the focus has to be on finding a bipartisan agreement as quickly as possible.”
Still, Mr. Reid’s optimism was echoed by Senate Minority Leader Mitch McConnell, who said Sunday that he expects a deal by Monday.
“This deal has not been finalized but I think we’re very, very close to something I could comfortably recommend to my members, and I believe the Democratic leadership will be doing the same,” Mr. McConnell said on CBS’ “Face The Nation.”
The Kentucky Republican said congressional lawmakers are considering spending cuts totaling $3 trillion that would raise the debt ceiling in two stages through the elections next year. It remains unclear whether President Obama, who has repeatedly objected to a two-vote solution, would support the proposal.
