Short term deal in works on US debt ceiling - KWWL - Eastern Iowa Breaking News, Weather, Closings

Short term deal in works on US debt ceiling

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WASHINGTON, D.C. (KWWL) -

The US Senate's top Republican is suggesting a short-term increase in the nation's borrowing limit unless there's a deal soon that includes changes to big entitlement programs.

Economists and Obama administration officials are warning of a calamity if the government defaults on its obligations.  The default deadline is Aug. 2.  Vice President Joe Biden is leading bipartisan talks on the debt limit and cuts in federal spending.

Senate GOP leader Mitch McConnell of Kentucky says that if a deal doesn't include significant entitlement program changes, then legislation raising the borrowing limit for just a few months is likely.

He says lawmakers would return to what he calls "the same discussion" this fall.

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