Senators say debt limit may not be raised in time, tell White House to develop ‘plan b’

Daily Caller

By Steven Nelson

If Congress fails to raise the nation’s debt limit, Republican senators want the White House to be prepared.

In a Wednesday letter to President Obama 23 senators wrote that there is a “very real possibility that the debt ceiling might not be raised in time.”

The letter, spearheaded by Wisconsin Republican Sen. Ron Johnson, said that lacking a contingency plan could harm the financial markets.

“We are calling on your Administration to immediately begin working with budget experts in Congress to allocate spending within a $2.6 trillion Debt Ceiling Budget,” the senators wrote. “All agency heads should then be instructed to develop plans to make sure essential services would be funded on a priority basis.”

The letter ridiculed a statement by Treasury Secretary Tim Geithner that said, “Our fallback plan is for Congress to pass the debt limit, and our fallback to the fallback plan is for Congress to pass the debt limit.”

Republican congressmen and the White House are locked in disagreement over the level of budget cuts that will be associated with raising the debt ceiling.

Full article here.