US Senate rejects Republican debt plan
The US Senate rejected the Republican's debt-ceiling plan on Friday.
The US Senate has rejected the Republican's debt-ceiling plan by a vote of 59-41, two hours after the House of Representatives approved the short-term bill.
"Tonight a bipartisan majority in the senate rejected Boehner's short-term plan, clearly,” said Senate Majority Leader Harry Reid.
“The country's attention is focused on a filibuster who prevents us moving forward on this legislation,” he added.
On Friday, the Democratic-controlled Senate rejected House Speaker John Boehner's plan after the Republican-controlled House passed the bill by a vote of 218-210.
“Our economy hangs on the balance and for the first time in the history of our country, unless there is a compromise or they accept my bill, we're headed for economic disaster - it's time for the Republicans to step forward,” Reid went on to say.
Democrats opposed the measure because it would require another painful debt-limit debate early next year amid presidential campaigning.
The two-step plan proposed by Boehner aims for about $3 trillion in spending cuts over 10 years and would raise the US debt ceiling while cutting government spending.
The US debt ceiling is currently capped at $14.3 trillion, up from $10.6 trillion when President Barack Obama took office in 2009, and the administration says that if it is not elevated by August 2, the government will default on its obligations.
On July 26, the Obama administration threatened to veto Boehner's proposed plan in a "statement of administration policy," saying Obama's advisors "would recommend that he veto this bill in case congressmen pass it."