President Obama opened talks with House Republicans on Thursday about their plan to lift the federal debt limit through late November, raising hopes that Washington would avert its first default on the national debt.
But after a 90-minute meeting at the White House, the two sides remained at odds over how and when to end the government shutdown — now in its 11th day — with Obama insisting that Republicans reopen federal agencies before negotiations over broader budget issues can begin.
In the Senate, top Republicans began crafting a proposal that would reopen the government and raise the federal debt limit for as long as three months — an approach closer to the terms Obama has set to end the standoff.
The developments meant that bipartisan negotiations were suddenly underway on two separate tracks Thursday after weeks of stalemate. Major questions remain, however, about the path ahead.
Both sides described Obama’s evening session with House Republicans as a “good meeting” and said talks will continue.
“The president’s goal remains to ensure we pay the bills we’ve incurred, reopen the government and get back to the business of growing the economy,” the White House said in a statement.
House Speaker John A. Boehner (R-Ohio) left the session and returned to the Capitol without speaking to reporters. Majority Leader Eric Cantor (R-Va.) said the meeting was “clarifying,” even though it did not produce a resolution.
“He didn’t say yes. He didn’t say no,” said House Budget Committee Chairman Paul Ryan (R-Wis.). “We’re continuing to negotiate this evening.”
White House officials were careful not to characterize the meeting as a negotiation, after the president spent weeks publicly and privately declaring that he would not negotiate over lifting the debt ceiling. According to a Democrat familiar with the meeting, Obama agreed to review GOP proposals for reopening the government but reiterated that he would not make policy concessions.
Republicans, however, did describe the process as a negotiation. The 20 House Republicans — Boehner declined the offer to bring all 232 GOP lawmakers to the White House — gathered in the Roosevelt Room with Obama, Vice President Biden, Treasury Secretary Jack Lew and other senior officials.
A similar huddle is slated for late Friday morning when Obama will host Senate Minority Leader Mitch McConnell (R-Ky.) and the Senate Republican Conference. McConnell and Biden have been largely on the sidelines the past few weeks despite having served as the closers for the past three large fiscal compromises.
With the Treasury Department at risk of running short of cash to pay the nation’s bills as soon as next week, the stock market soared Thursday on signs that an end to the impasse may be at hand. The Dow Jones industrial average shot up more than 300 points to close at 15,126.07, recovering most of the value it had lost since the shutdown began Oct. 1. The Nasdaq and Standard & Poor’s 500 Index rose more than 2 percent.
The House proposal that emerged Thursday would push off the threat of default until Nov. 22, but it would not end the shutdown, an idea that fell flat in the Senate with members of both parties. For the first time since the brinkmanship began in early September, McConnell added into the fray, holding meetings with his rank-and-file members to develop a competing Senate proposal.
But after a 90-minute meeting at the White House, the two sides remained at odds over how and when to end the government shutdown — now in its 11th day — with Obama insisting that Republicans reopen federal agencies before negotiations over broader budget issues can begin.
In the Senate, top Republicans began crafting a proposal that would reopen the government and raise the federal debt limit for as long as three months — an approach closer to the terms Obama has set to end the standoff.
The developments meant that bipartisan negotiations were suddenly underway on two separate tracks Thursday after weeks of stalemate. Major questions remain, however, about the path ahead.
Both sides described Obama’s evening session with House Republicans as a “good meeting” and said talks will continue.
“The president’s goal remains to ensure we pay the bills we’ve incurred, reopen the government and get back to the business of growing the economy,” the White House said in a statement.
House Speaker John A. Boehner (R-Ohio) left the session and returned to the Capitol without speaking to reporters. Majority Leader Eric Cantor (R-Va.) said the meeting was “clarifying,” even though it did not produce a resolution.
“He didn’t say yes. He didn’t say no,” said House Budget Committee Chairman Paul Ryan (R-Wis.). “We’re continuing to negotiate this evening.”
White House officials were careful not to characterize the meeting as a negotiation, after the president spent weeks publicly and privately declaring that he would not negotiate over lifting the debt ceiling. According to a Democrat familiar with the meeting, Obama agreed to review GOP proposals for reopening the government but reiterated that he would not make policy concessions.
Republicans, however, did describe the process as a negotiation. The 20 House Republicans — Boehner declined the offer to bring all 232 GOP lawmakers to the White House — gathered in the Roosevelt Room with Obama, Vice President Biden, Treasury Secretary Jack Lew and other senior officials.
A similar huddle is slated for late Friday morning when Obama will host Senate Minority Leader Mitch McConnell (R-Ky.) and the Senate Republican Conference. McConnell and Biden have been largely on the sidelines the past few weeks despite having served as the closers for the past three large fiscal compromises.
With the Treasury Department at risk of running short of cash to pay the nation’s bills as soon as next week, the stock market soared Thursday on signs that an end to the impasse may be at hand. The Dow Jones industrial average shot up more than 300 points to close at 15,126.07, recovering most of the value it had lost since the shutdown began Oct. 1. The Nasdaq and Standard & Poor’s 500 Index rose more than 2 percent.
The House proposal that emerged Thursday would push off the threat of default until Nov. 22, but it would not end the shutdown, an idea that fell flat in the Senate with members of both parties. For the first time since the brinkmanship began in early September, McConnell added into the fray, holding meetings with his rank-and-file members to develop a competing Senate proposal.