The Philippine Star

Republican leaders offer reprieve to US debt crisis

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WASHINGTON (AP) Ñ House Republican leaders Friday offered President Barack Obama a threemonth reprieve to a looming, marketratt­ling debt crisis, backing off demands that any immediate extension of the government’s borrowing authority be accompanie­d by stiff spending cuts.

The retreat came with a caveat aimed at prodding Senate Democrats to pass a budget after almost four years of failing to do so: a threat to cut off the pay of lawmakers in either House or Senate if their chamber fails to pass a budget this year. House Republican­s have passed budgets for two consecutiv­e years.

The idea got a frosty reception from House Democrats but a more measured response from the White House and Democratic Senate Majority Leader Harry Reid.

Republican­s hadn’t settled on full details, but the measure would give the government about three more months of borrowing authority beyond a deadline expected to hit as early as mid-February, No. 2 House Republican Eric Cantor said Friday.

The legislatio­n wouldn’t require im- mediate spending cuts as earlier promised by Republican leaders like House Speaker John Boehner. Instead, it’s aimed at forcing the Democratic-controlled Senate to join the House in debating the federal budget.

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