The Republican-led House of Representatives will vote on Wednesday on a plan to suspend the nation's debt limit, CBS News has learned.
The plan,, would accommodate about three more months of borrowing while requiring the House and Senate to pass a budget. If either chamber failed to pass a budget, according to this proposal, their congressional salaries would be withheld.
Republicans are intent on reducing spending in exchange for raising the nation's borrowing authority. President Obama and Democrats, however, say there should be no conditions attached to the debt limit, since it covers debt already racked up in Washington -- not future spending.
If Congress fails to raise the $16.4 trillion limit, the nation could potentially default on its loans, which economists say would have a severe economic impact. Treasury Secretary Timothy Geithner has informed Congress that the Treasury is expected to exhaust its borrowing authority by mid-February or early March.