WASHINGTON (AP) — The White House is getting behind a proposal by Senate Majority Leader Harry Reid to avert a debt-limit crisis by trimming $2.7 trillion of government spending. The White House stopped short of issuing a veto threat against a competing House Republican plan.
White House spokesman Jay Carney said in a statement that Reid's proposal was a "reasonable approach that should receive the support of both parties."
Reid's plan does not include any new tax revenue, as President Barack Obama has demanded. But unlike the GOP plan, it would extend the debt ceiling into 2013 — an Obama ultimatum.
Carney said all the cuts proposed by Reid had already been agreed to by White House and Republican negotiators during talks led by Vice President Joe Biden. Those discussions broke down last month.