White House says Obama could agree to short-term debt-limit hike

White House says Obama could agree to short-term debt-limit hike

President Obama could agree to a short-term hike of the debt ceiling only if there are concrete plans in place to move quickly with a grand bargain, the White House said Wednesday.

White House press secretary Jay Carney stressed that Obama is opposed to temporary increases to the U.S. borrowing limit, but he opened the door a crack, saying that Obama could agree to something short-term in order to give lawmakers time to finalize a deficit-reduction plan like the one unveiled by the bipartisan Senate Gang of Six.

"The president does not support a short-term extension of the debt limit, period," Carney said. "The only exception to that is in the event that both sides reach a deal on a long-term extension of the debt limit plus significant deficit reduction, and we needed a very short-term extension, like a few days, to allow a bit of extra time for a bill to work its way through the legislative process."

The Gang of Six offered a $3.7 trillion deficit-reduction package that won quick bipartisan support in the Senate, but even members of the group said it is doubtful the plan could be scored and translated into legislative language by the Aug. 2 deadline for raising the $14.3 trillion debt ceiling.

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Carney acknowledged “overwhelming odds,” but insisted it was still possible move a big deal through Congress before Aug. 2.

“There is still time to do something significant, especially if all the parties are willing to compromise,” Carney said.

He added: “I'm not laying bets that it’s going to happen. But it would be a failure of leadership not to try just because the odds are overwhelmingly against it.”

Obama was set to meet with Democratic leaders from the Senate and House at the White House on Wednesday afternoon.

Carney announced on Twitter that Obama will meet with Speaker John BoehnerJohn Andrew BoehnerFormer top Treasury official to head private equity group GOP strategist Steve Schmidt denounces party, will vote for Democrats Zeal, this time from the center MORE (R-Ohio) and House Majority Leader Eric CantorEric Ivan CantorThe Hill's Morning Report — Sponsored by CVS Health — Trump’s love-hate relationship with the Senate Race for Republican Speaker rare chance to unify party for election Scalise allies upset over Ryan blindside on McCarthy endorsement MORE (R-Va.) at 5 p.m.

Tuesday night, after the House GOP's “cut, cap and balance” budget plan passed, Obama spoke by telephone with Senate Majority Leader Harry ReidHarry Mason ReidAmendments fuel resentments within Senate GOP Donald Trump is delivering on his promises and voters are noticing Danny Tarkanian wins Nevada GOP congressional primary MORE (D-Nev.), Senate Minority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellMulvaney aims to cement CFPB legacy by ensuring successor's confirmation Senate left in limbo by Trump tweets, House delays Political figures pay tribute to Charles Krauthammer MORE (R-Ky.), BoehnerJohn Andrew BoehnerFormer top Treasury official to head private equity group GOP strategist Steve Schmidt denounces party, will vote for Democrats Zeal, this time from the center MORE and House Minority Leader Nancy Pelosi (D-Calif.).

Carney said that Obama was “immensely enthusiastic” about the possibility of the Gang of Six's plan going forward.

But Carney said the president continues to be supportive of Reid and McConnell's efforts to craft a back-up plan to ensure that the U.S. does not default.

The Gang's plan has been more cooly received by House Republicans. It has also been criticized from the left by Sen. Bernie SandersBernard (Bernie) SandersA case for open borders and how it can boost the world economy Sen. Sanders: 'Hypocrite' Trump rants against undocumented immigrants, but hires them at his properties On The Money — Sponsored by Prudential — Trump floats tariffs on European cars | Nikki Haley slams UN report on US poverty | Will tax law help GOP? It's a mystery MORE (I-Vt.) and AFL-CIO President Richard Trumka.


—This story was first posted at 2:12 p.m. and updated at 3:06 p.m.