Federal Budget, Spending Cuts | featured news

Budget talks between President Barack Obama and his GOP rivals are at a frustrating standstill, leading a top Republican to launch a long-shot proposal to give Obama sweeping new powers to muscle through an increase in the government's debt limit without the approval of a bitterly divided Congress.

Talks to reach a more ambitious deficit-reduction deal effectively broke down on Saturday, House Speaker John Boehner said, as he and fellow Republicans resisted any White House attempts that could increase taxes.

The Speaker of the House said that there were still significant obstacles in the way of an agreement.

In advance of Thursday’s White House meeting to resolve the stalemate in the debt talks, we've learned that Obama and Speaker Boehner share a goal to prove they can get a 'big' deal done.

Republicans would accept a “mini” deal with the Obama administration on raising the debt limit, Senator John Cornyn of Texas, a Republican leader, said. Cornyn said today on “Fox News Sunday” that while Republicans would prefer a long-term settlement, they would accept a shorter-term agreement if that’s all they could get done. The U.S. Treasury Department has projected that on Aug. 2 the U.S. will no longer be able to meet obligations if the legal debt ceiling isn’t raised.

The Senate will forgo its scheduled recess for the week of July Fourth to work on cutting the deficit, Sen. Harry Reid said today.

President Obama meets with Senate leaders, but no one wants to back away from tough stances on taxes. Debt-reduction talks between congressional leaders and the White House entered a crucial phase Monday, with no clear framework for resolving the deadlock over taxes and spending and a deadline for a potential federal default fast approaching.

An unusual round of golf won't solve the Republican-Democratic budget battles, but it could lead to better relations between the White House and Congress. The president prefers a laid-back round on a Sunday morning.

Congressional negotiators from both parties are set to sit down Thursday afternoon for their latest meeting on deficit reduction with Vice President Biden. The huddle, which begins at 1 p.m. at the Capitol, marks the group’s fifth meeting. On the agenda: the budget process, discretionary spending and the contentious issue of revenue. Here are some things to keep an eye on as the talks convene.

Ratings agency Moody's warned on Thursday it would consider cutting the United States' coveted top-notch credit rating if the White House and Congress do not make progress by mid-July in talks to raise the debt limit.