The House of Representatives passed Speaker John Boehner's new debt bill aimed at cutting government spending in order to raise the nation's the borrowing limit. Senate Democrats have reportedly promised to defeat the bill.
The Senate may vote on the bill as early as Friday night.
WASHINGTON (The Blaze/AP) -- Republicans have muscled legislation to extend the government's borrowing authority and cutting spending through the House over solid Democratic opposition.
The 218-210 vote sets up a confrontation with the Democratic-controlled Senate and President Barack Obama, who say the GOP-written measure will die in the Senate. They say the bill would wreak economic havoc because it would force lawmakers to vote on another extension of the debt ceiling early next year, in the heat of presidential and congressional campaigns.
Administration officials say Congress must find a compromise to raise the debt ceiling by Tuesday or the government will run out of cash to pay its bills. That could prompt an unprecedented federal default, which could rattle the economy with shocks such as higher interest rates.
Meanwhile, Fox News White House correspondent Mike Emanuel thinks the fact that Republicans have passed another House bill might give the GOP leverage in terms of debt negotiations. At first, when the Boehner plan seemed like it may fail, Emanuel said the feeling was that Senate Majority Leader Harry Reid might have the upper hand. Now the tables have turned. Watch the clip below: