By Sam Youngman - 07/30/11 06:55 PM EDT
The White House endorsed Senate Majority Leader Harry Reid’s (D-Nev.) debt-ceiling bill shortly before it was set to go down in flames in a House vote.
The endorsement came in a statement of administration policy from the White House Office of Management and Budget, which said the administration “strongly supports” the Reid bill and that “senior advisors would recommend [President Obama] sign it.”
“It is imperative that the United States not default on the nation's obligations, that the full faith and credit of the United States be preserved and that the nation's fiscal house be put in order,” the statement said.
“The [Reid] bill would increase the debt ceiling to a level that will be sufficient for the nation to meet its obligations through the beginning of 2013, while providing both a significant down payment on deficit reduction and a means to further address deficit reduction through a balanced approach that allows for both cutting spending and eliminating tax subsidies that benefit the wealthiest Americans and corporations.”