Intense talks under way between Senate Dems, GOP on debt deal

Senate Democratic and Republican leaders are having intense discussions to come up with a bipartisan solution for raising the debt ceiling.

Senate Majority Leader Harry ReidHarry ReidThe Memo: Trump pulls off a stone-cold stunner The Memo: Ending DACA a risky move for Trump Manchin pressed from both sides in reelection fight MORE (D-Nev.) told reporters that he needs ideas from Republicans sometime Friday if Congress is to meet the Aug. 2 deadline.

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A Senate GOP leadership aide said the two sides have until early Sunday morning to reach an agreement.

The two sides are discussing trigger mechanisms that could be used to build bipartisan support. Such triggers would force Congress to carry out another round of deficit reduction before the 2012 election.

Reid has a plan that would cut more than $2 trillion and set up a select joint committee to assemble a package to further reduce the deficit. 

So far, no Republicans have supported it.

Republicans argue that Reid’s bill would cut much less because they contend the $1 trillion Democrats have counted in war savings amounts to a budget gimmick. They say President Obama was planning to draw down the troop levels in any case.

Republicans have endorsed a Democratic idea of setting up a special committee to find additional savings. Speaker John BoehnerJohn Andrew BoehnerSpeculation mounts, but Ryan’s job seen as safe Boehner warns Trump: Don't pull out of Korea-US trade deal GOP Rep: Ryan wasting taxpayers dollars by blocking war authorization debate MORE (R-Ohio) included the idea in his proposal, which is likely to come up for a vote Friday afternoon.

But many lawmakers are skeptical that a special bipartisan panel, evenly split between six Democrats and six Republicans, could reach an agreement.

One possibility under consideration is to automatically enact spending cuts and tax increases — a penalty painful to both Democrats and Republicans — if the committee fails to act. 

Another fail-safe option would be to automatically implement the instructions of the Senate’s Gang of Six framework, which calls for steep spending cuts, reforms to Medicare, Medicaid and Social Security and about $1 trillion in increased revenues. The group projects its plan would reduce the deficit by $3.7 trillion.

Many Republicans have endorsed the framework, including Sen. Lamar AlexanderAndrew (Lamar) Lamar AlexanderWeek ahead: Senators near deal to stabilize ObamaCare markets Corker pressed as reelection challenges mount Overnight Health Care: CBO predicts 15 percent ObamaCare premium hike | Trump calls Sanders single-payer plan ‘curse on the US’ | Republican seeks score of Sanders’s bill MORE (Tenn.), the third-ranking member of the Senate GOP leadership, Sen. Kay Bailey Hutchison (Texas) and Sen. Richard BurrRichard Mauze BurrLawmakers grapple with warrantless wiretapping program Facebook under fire over Russian ads in election 5 senators call for US to shutter embassy in Havana MORE (N.C.).

Reid said Friday that he has suggested using the Gang of Six’s work as a trigger mechanism to build bipartisan support, but not a single Republican has said it would be enough to win his or her vote for a Senate plan to raise the debt limit.

“We considered that. The problem to this point is that we have not had a single Republican come forward and say they’d be willing to do something like that,” Reid said. “As I said, I’m anxious to talk to people about how we should move forward. I’ve invited the Republicans to call me, come and see me.”

Senate Majority Whip Dick DurbinRichard (Dick) Joseph DurbinSenate Dems hold floor talk-a-thon against latest ObamaCare repeal bill Overnight Defense: Senate passes 0B defense bill | 3,000 US troops heading to Afghanistan | Two more Navy officials fired over ship collisions Senate passes 0B defense bill MORE (D-Ill.) said trigger mechanisms have become a focus of private negotiations.

“That’s what it’s all about, whether it’s the debt ceiling or balanced-budget amendments — the question is, how do you guarantee at the end of the period the joint committee is meeting that something happens,” said Durbin. “The only way to do it and be sure that it works is to make sure there is adequate pain on both sides of the aisle.”

“The description of the triggers, I think if we’re having a trigger, is going to be part of the endgame negotiations,” Durbin said.

Reid said he is also still considering the last-resort fall-back plan Senate Republican leader Mitch McConnellAddison (Mitch) Mitchell McConnellSenate passes 0B defense bill Overnight Health Care: New GOP ObamaCare repeal bill gains momentum Overnight Finance: CBO to release limited analysis of ObamaCare repeal bill | DOJ investigates Equifax stock sales | House weighs tougher rules for banks dealing with North Korea MORE (Ky.) introduced earlier this month.

McConnell’s plan would give Obama authority to request a $2.5 trillion increase of the debt limit in three tranches, which would be subject to congressional resolutions of disapproval. The plan would give Obama nearly sole authority to raise the debt limit because it would require two-thirds votes in both chambers to override his veto of a disapproval resolution.

“... [T]hat’s certainly one of things I’m looking at, but I want to give the Republicans an opportunity to see how they feel my bill should be changed,” Reid said.

But Reid said time is fast running out for McConnell to suggest changes to the Senate Democratic plan to raise the debt limit.

“We need him to come today. I need something now,” he said.