White House Rejects 'Partisan' GOP Debt Plan

The White House has rejected a new proposal from House Republicans for reopening the government and extending the debt ceiling.

House GOP leaders on Tuesday pitched the plan to fellow Republicans to counter an emerging Senate deal to reopen the government and forestall a looming default on US obligations.

The proposal, which includes a two-year suspension of a tax on medical devices aimed at funding President Obama's signature health care law, was immediately rejected by the White House.

Senate leaders Reid (L) and McConnell have expressed cautious optimism

White House spokeswoman Amy Brundage said the plan is a "partisan attempt to appease a small group of Tea Party Republicans who forced the government shutdown in the first place".

Democratic Representative Chris Van Hollen tweeted that the "GOP's latest plan is designed to torpedo the bipartisan (Senate) solution."

He called the plan "not only reckless", but "tantamount to default".

Mr Obama has rejected the latest proposal from House conservatives

The House proposal emerged after conservative lawmakers rebelled at the outlines of the emerging Senate plan by Majority Leader Harry Reid and GOP leader Mitch McConnell.

Those two hoped to seal an agreement on Tuesday, just two days before the Treasury Department says it will run out of borrowing capacity.

The White House praised the Senate negotiations as a good-faith effort to end the partial government shutdown and avoid an economy-shaking default.

Mr Obama also planned to meet with House Democratic leaders on Tuesday afternoon as talks continue.

John Boehner, the top Republican in the House, stopped short of saying the GOP's latest proposal would be tabled for a vote on Tuesday.

The House Speaker told reporters he is "trying to find a path forward" but that "there have been no decisions about exactly what we will do".

The competing House and Senate plans are a far cry from the assault on "Obamacare" that Tea Party Republicans originally demanded as a condition for a short-term funding bill to keep the government fully operational.

It lacks the budget cuts demanded by Republicans in exchange for increasing the government's $16.7trn (£10.5trn) borrowing cap.

Like the House GOP bill, the emerging Senate measure - though not finalised - would reopen the government through January 15 and permit the Treasury to borrow normally until early to mid-February.

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