By Erik Wasson - 08/01/11 03:33 PM EDT
The Congressional Budget Office on Monday reported that the debt-ceiling deal reached by congressional leaders and the White House would cut federal deficits by $2.1 trillion over 10 years.
The CBO found that the total reduction in deficits under the plan would be roughly equal or greater than the $2.1 trillion increase in the debt ceiling.
The bill meets Speaker John Boehner's (R-Ohio) pledge to match any debt-ceiling hike with spending cuts.
The deal calls for a $900 billion increase in the debt ceiling followed by another $1.2 trillion increase if a joint committee to be created by congressional leaders fails to find more savings.
The CBO is using an adjusted March baseline that does not allow dealmakers to include savings already realized by the April spending-cuts deal for fiscal 2011. It also does not count savings from Iraq and Afghanistan, something Democrats wanted to include but which the GOP called a gimmick.
House leaders are meeting at 12:30 p.m. to try to convince rank-and-file to vote for the deal. With Tea Party groups opposed, a sizable defection of conservatives is expected. They prefer the "cut, cap and balance" bill that would have cut at least $6 trillion.
Updated at 1:238 p.m.