New Hill move: House GOP shows debt ceiling plan

By ANDREW TAYLOR | July 25, 2011 | 2:13 PM EDT

WASHINGTON (AP) — Republicans controlling the House have released a two-track plan to increase the nation's borrowing cap by $1 trillion and permit a larger increase next year that's dependent on Congress passing cuts to benefit programs like Medicare and farm subsidies.

The plan unveiled by House Speaker John Boehner (BAY'-nur) would impose $1.2 trillion in cuts to domestic agencies over the coming decade and establish a special panel of lawmakers to recommend cuts to benefits programs for a vote by the end of December.

The two-track proposal is opposed by Democrats and President Barack Obama, but may be emerging as the most likely resolution to the current debt crisis.