House GOP to seek three-month debt limit hike

Updated 2:20 p.m. ET

WILLIAMSBURG, Va. Seeking to gain the upper hand early in debt limit negotiations, House Republicans announced Friday they will take up a roughly three-month debt limit hike next week.

House Majority Leader Eric Cantor, R-Va., announced the decision in a statement following a three-day GOP conference retreat at a resort in Williamsburg, Va.

Cantor said the three-month extension would give the Senate and House enough time to pass a budget and that "if the Senate or House fails to pass a budget in that time, Members of Congress will not be paid by the American people for failing to do their job."

Treasury Secretary Timothy Geithner has informed Congress that the United States is expected to hit its current debt limit of $16.4 trillion by mid-February or March.

• Ryan floats short-term debt limit increase idea
• Geithner reinforces Obama's debt ceiling warning to Congress
• Obama: Not raising debt limit "absurd", "financial disaster"

Republican leaders worked with members over the three-day retreat to try to build consensus among the GOP conference in order to avoid the bloody battle in 2011 that occurred over raising the country's borrowing authority to cover its debts and the end of year fight over the "fiscal cliff" that revealed deep divisions among Republicans. Adding demands that the Senate pass a budget to increase the debt limit sweetens the pot for a conference frustrated by repeated budget and spending deals that don't cut spending as much as they'd like.

Senate Democrats have failed to pass a budget since April of 2009. Republicans want them to put pen to paper and show how they would address the debt and deficit rate.

A GOP leadership aide said the debt limit increase would be one package requiring both chambers to pass a budget, but it would not include spending cuts.

Cantor added that future congressional pay would be contingent on the Senate passing a budget; if House members pass a budget, as they plan to do, they would receive their pay. House and Senate members make $174,000 per year.

"[I]f the Senate or House fails to pass a budget in that time, Members of Congress will not be paid by the American people for failing to do their job," Candor said. "No budget, no pay," he added.

White House press secretary Jay Carney said in a statement, "The President has made clear that Congress has only two options: pay the bills they have racked up, or fail to do so and put our nation into default. We are encouraged that there are signs that Congressional Republicans may back off their insistence on holding our economy hostage to extract drastic cuts in Medicare, education and programs middle class families depend on. Congress must pay its bills and pass a clean debt limit increase without further delay. And as he has said, the President remains committed to further reducing the deficit in a balanced way."

Senate Majority Leader Harry Reid, D-Nev., released a statement responding to the plan to extend the debt limit, but did not mention the conditions, so an extension of the debt limit is not yet a done deal.

"If the House can pass a clean debt ceiling increase to avoid default and allow the United States to meet its existing obligations, we will be happy to consider it," Reid said.

According to excerpts released of remarks by House Speaker John Boehner, R-Ohio, to his conference on the closing day, he took a swipe at the Senate record on the budget.

"The Democratic-controlled Senate has failed to pass a budget for four years. That is a shameful run that needs to end this year."

[GBUJarhead]

When are these guys going to figure out that debt is not the problem and that unemployment is what really matters?

[bobw101]

taylorsucram says:

C George W. Bush added an extra $5.07 Trillion Dollars to the National; Debt while President Obama has added $1.44 Trillion Dollars to the National Debt.
-----------------------------

Nice try, Obama has added right at 6 trillion to the national debt, in his first term. Obviously there is a house and senate also, but he did sign all the bills.

[taylorsucram]

Consider the following facts. Ronald Reagan arrived at the White House in 1981 touting three major agenda items. Two of these were just like George Bush's 20 years later: greatly increase defense spending and slash taxes on the wealthy (remember its called "Voodoo Economics). He did both. The national debt nearly tripled on Reagan's watch, from $993 billion to $2.6 trillion. George W. Bush added an extra $5.07 Trillion Dollars to the National; Debt while President Obama has added $1.44 Trillion Dollars to the National Debt.

So, what party is responsible for adding over $7 Trillion Dollars to the National Debt and why was America silent while they did so? Why is this President all-of-a-sudden responsible for your lack of attention during the Reagan & Bush (both of them) years?

Over the last 30 years, the debt has increased under every president with the BIGGEST INCREASE UNDER PRESIDENT G.W. BUSH, who cut taxes, added a drug benefit to Medicare and fought two wars OFF-THE-BOOKS! Do you voting citizens understand the last entence? "... the biggest increase was under President George W. Bush ..." So you can get back to reality and quit blaming President Obama for our deficit. This is not about the Debt Ceiling and the Republicans admit it.

By the way ~ Congress has acted 78 times since 1960 to raise the debt limit, 49 times under Republican presidents, and 29 times under Democratic presidents. So Republicans have required the Debt Ceiling to be raised almost twice as many times as the Democrats have. An almost 2 - to - 1 ratio! Hmmmmmm ....

[PourpaixPourpaix]

I find it very offensive that Senate Democrats are constantly blamed for failures to pass a budget, when in fact the Senate Republicans use illegitimate tactics to obstruct any and every deviation from their small-minded policies. Refusal to pass the trash bills that the House gives them is hardly a failure.

I'm no friend of the advocates for the United States of Republicans, but their debt limit proposal with clear goals/consequences and allowing adequate time to develop a complex budget makes sense. Not sure if Congress is smart enough to implement the plan, but loss of salary in that case makes sense, as does the plan.

[76SpiritOf]

Actually my thought is why are we paying them now?

"if the Senate or House fails to pass a budget in that time, Members of Congress will not be paid by the American people for failing to do their job."

When have they actually don their job in the last two years?

They should repay us with interest for the last two years.

[antoniof123]

Is it just me or are the Republicans useless, they did nothing for the last two years nothing and now they are setting up to do nothing again.

They are trying to destroy the country or what?

[crankyoleman]

No, both sides did squat for the last 4 years.

[omnibus66]

When the new Democratic majority Congress opens in 2015, things will get fixed. Until then, this is what we will get. When you are gored by a bull, arguing with the doctors over what kind of stitch to use really doesn't help.

[lucky57e10]

I could save 1.8 Trillion dollars, Fire 3 million STATE and FEDERAL EMPLOYEES

That still leaves 6 million to do VERY LITTLE

Desk 1 will have to hand paper directly to Desk 3. Desk 2 was layed off.

[nearl451]

And then you'd blame Obama for the uptick in unemployment at the same time.

Your solutions are not viable.

A return to the "cliff" conditions makes more sense. Across the board cuts and some tax increases ....for everyone.

[lami987]

GOP said businesses need stability to create jobs. Three month extention sure create a lot of stability for businesses at least according to them. It'll be a different story if it were somebody else who did that. U.S. debt creation is the same thing. Reagan and Bush Sr. more than quadrupled our debt in 12 years. Bush Jr. doubled our debt in 8 and brought our economy to our worse recession since 1930s but GOP didn't say anything about it. Now all of a sudden GOP are complaining big time about Obama's spending trying to fix our economy. Instead of helping they obstruct Obama's every single move.

[1pheasant1]

Cantor said, "members of Congress will not be paid by the American people for failing to do their job."
__________________________________________________
Does this ballon knot really think that the Senators live paycheck-to-paycheck? Maybe some of the Representatives do, but come on, the pay is just a drop in the bucket to our Senators.

The reality for Cantor, is he needs to corral the chuckleheads in the House of Representatives, brand them, and send them out to the back-forty.

[tmcmanus03]

as Eric Cantor knows (or he should know), the 27th Amendment to the United States Constitution is dedicated to the compensation for services of the Senate and Congress. Cantor know there will be no withholding of anyone's pay, he's just buffing up his chest to hopefully make a point. Can any of these people ever speak the truth, it's that why we elected them. I read everyone's comments and all the bickering. Learn what the issues are, how you can effect change and call you Congressman. Wasting your time here in discussion would be more beneficial if it were with your representative from Congress.

[bluejacket2-2009]

Bottomline, the Republican Party lead by the tea party confederates are going down... Thank You Sarah Palin for ending the GOP as we know it!!!!

Obama is not king he's a simple American who does what is right....