ABC News' Jonathan Karl reports:
Negotiations on a bi-partisan compromise to raise the debt limit have reached an impasse, with the two sides deadlocked over whether there would be another vote next year to raise the debt ceiling.
Now both sides are developing their own alternatives and a deal looks highly unlikely until Monday at the earliest.
Later tonight Senate Majority Leader Harry Reid will begin briefing Senate Democrats on a plan that would raise the debt ceiling through the start of 2013, cut $2.4 trillion in spending and include no new taxes. It is designed to be a deal that Republicans would have a hard time turning down, but the cuts will include things Republicans don't like either because they aren't "real" (interest savings, future war savings, etc) or they come out of the defense budget.
As for Republicans, I am told Boehner will present two options: 1) accepting a deal that cuts $1.2 trillion now and leaves the other cuts up to a debt commission but gives the president the full debt ceiling increase now (this will be seen as caving in to the White House); or, 2) trying to pass a Republican plan to that would require two debt limit votes — one now and one after the commission passes the additional cuts next year.
There are two problems with that second Republican option: They may not have 218 votes to pass it in the House and even if they do, the President has threatened to veto it.