Republican and Democratic congressional sources say a tentative agreement has been reached on the framework of a deal to raise the debt ceiling as much as $2.4 trillion and guarantee an equal amount of deficit reduction over the next decade, according to ABC News.
A senior White House aide explained to ABC that the deal is not yet final. “[T]alks continue but there is no deal to report,” the aide said. (Reid plans vote on all but dead debt ceiling proposal Sunday afternoon)
Sources did tell ABC, however, that the key elements of the plan include a debt ceiling increase of between $2.1 to $2.4 trillion, spending cuts of approximately $1.2 trillion over the next decade, a vote on a balanced budget amendment in the House and Senate, and the creation of a special congressional committee to recommend further deficit reduction of as much as $1.6 trillion.
The special committee, sources said, would have to make its recommendations before the congressional Thanksgiving recess. The deal would also stipulate that if Congress does not approve the committee’s recommendations for deficit reduction by mid-December, automatic across-the-board cuts would be triggered, including cuts to Medicare and Defense spending.