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Senate Democrats to try passing debt ceiling increase

By Andrew Taylor

Associated Press

Published: Tuesday, Oct. 8 2013 12:21 p.m. MDT

House Speaker John Boehner of Ohio arrives on Capitol Hill in Washington, Monday, Oct. 7, 2013.

J. Scott Applewhite, Associated Press

WASHINGTON — President Barack Obama called the top Republican in the GOP-controlled House Tuesday, telling Speaker John Boehner once again that he won't negotiate over reopening the government or must-pass legislation to prevent a U.S. default on its obligations.

In the second week of the partial government shutdown, Obama's call, revealed by Boehner's office, came as the speaker softened the tone of his rhetoric in remarks to the media and as Democrats controlling the Senate planned to move quickly toward a vote to allow the government to borrow more money by raising the statutory limit on the federal debt.

"I want to have a conversation. I'm not drawing lines in the sand. It is time for us to just sit down and resolve our differences," said Boehner, R-Ohio.

He added: "There's no boundaries here. There's nothing on the table, there's nothing off the table."

For his part, Senate Majority Leader Harry Reid said he is willing to negotiate over the budget but only after the government is funded and the debt ceiling lifted.

"All we're asking is that government be reopened. Stop threatening a catastrophic default on the nation's bills," the Nevada Democrat said.

A spokesman said Reid could unveil the debt limit measure as early as Tuesday, setting the table for a test vote later in the week. The measure is expected to provide enough borrowing room to last beyond next year's election, which means it likely will permit $1 trillion or more in new borrowing above the current $16.7 trillion debt ceiling that the administration says will be hit on Oct. 17. It's not expected to include new spending cuts sought by Republicans.

GOP aides said that the House vote would set up a new bipartisan panel to negotiate reopening the government and avoiding a default, tied to legislation to make sure federal employees who are required to work during the partial shutdown get paid on time.

Those affected include families of service members killed in action. Survivors are typically sent a $100,000 payment within three days to help with costs such as funeral expenses. Because of the shutdown, the Defense Department doesn't have the authority to make the payments, officials said Monday, even though most of the department's civilian workers have been recalled.

Some 350,000 civilian Defense Department workers were summoned back to work Monday as the result of legislation Congress passed and Obama signed after the shutdown began. Many other agencies, such as NASA and the Environmental Protection Agency, remain mostly shuttered.

Even the White House is feeling the effects, with about 3 out of 4 staffers furloughed.

It's not clear whether Reid's gambit will work in the Senate. Republicans are expected to oppose the measure if it doesn't contain budget cuts to make a dent in deficits. The question is whether Republicans will try to hold up the measure with a filibuster. Such a showdown could unnerve the financial markets.

Until recently, debt limit increases have not been the target of filibusters; the first in memory came four years ago, when Democrats controlled the Senate with a filibuster-proof 60 votes.

Many Republicans in the Senate, including Minority Leader Mitch McConnell of Kentucky and Whip John Cornyn of Texas, have voted for so-called clean debt limit increases during Republican administrations.

Some Republicans seemed wary of participating in a filibuster that could rattle the stock and bond markets.

"We shouldn't be dismissing anything out of hand, whether it's the debt ceiling or what we're going to do with this government shutdown," Sen. Lisa Murkowski, R-Alaska, said. "We've got a situation where you've got a calendar running, you've got people who are frustrated and upset, so let's figure it out."

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