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Shortly after Republican leaders of the House of Representatives canceled plans for a Tuesday night vote, the two top figures in the Senate rebooted their own talks aimed at ending the U.S. budget standoff.
Spokesmen for Democratic Sen. Harry Reid and GOP Sen. Mitch McConnell -- their chamber's majority leader and minority leader, respectively -- said Tuesday night that they restarted negotiations aimed at creating legislation that would fully reopen the government and raise the nation's debt ceiling.
The Treasury Department says it will hit its borrowing limit on Thursday -- and economists warn that failure to raise the debt limit by then could spike interest rates with possible catastrophic impact at home and abroad. With the Republican leadership apparently unable to come up with any plan acceptable to its members, the Wall Street bond-rating firm Fitch warned of a possible downgrade of gold-plated U.S. bonds, citing the risk of default from "political brinkmanship.
According to multiple sources, the House plan would have called for funding the government through December 15 to end the partial shutdown that entered its third week on Monday. It also would increase the federal debt ceiling until February 7.
In addition, the House GOP version would have included a provision demanded by tea party conservatives that would prohibit federal subsidies for the President, officials in his administration, members of Congress and their respective staff in buying health insurance under Obama's signature health care reforms.
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