House shutdown plan fails; focus again on Senate

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WASHINGTON -- It's apparently up to the U.S. Senate to fashion a compromise to reopen the government and avert a national default.

Hours after House leadership said there would be a late vote on an alternative to a possible Senate compromise, the measure was pulled.

It would have permitted the Treasury to borrow normally until Feb. 7 and the government to reopen with sufficient funds to carry it to Dec. 15.   

But there were objections from all corners of the rank and file. And Heritage Action, a group with tea party ties, said it would include the vote in its determinations next year on which candidates to support in the midterm elections.

Meanwhile, aides to both Senate Majority Leader Harry Reid and the Republican leader, Mitch McConnell, expressed revived optimism about chances for a swift agreement -- by Wednesday at the latest -- that could pass both houses.

In New York, the stock market dropped and the Fitch rating agency warned that it was reviewing the government's AAA credit rating for a possible downgrade, though no action was near.

Associated Press

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