WASHINGTON (Reuters) - Senate Democratic Leader Harry Reid revised his debt-limit bill on Friday to incorporate elements of a “backup plan” first proposed by the Senate’s top Republican, Mitch McConnell.
Reid’s plan originally envisioned raising the U.S. debt limit in one step by $2.7 trillion, enough to cover the nation’s borrowing needs through the November 2012 elections.
The new version would essentially allow President Barack Obama to raise the debt ceiling in three steps. Through a complex legislative process, Congress could approve these debt-ceiling hikes with only a one-third vote in each chamber.
Reporting by Andy Sullivan; Editing by Anthony Boadle