According to the president, the deal means an immediate cut of $1 trillion in government spending over a 10-year period accompanied by a $900 billion increase in the debt ceiling. That will be followed by the creation of a committee to come up with additional cuts worth at least $1.5 trillion to be voted on by the end of the year. The debt ceiling will be raised by $1.5 trillion if the committee recommendations are approved.

Each of the GOP and Democratic leaders in the chamber will nominate lawmakers to the 12-member committee to report back in the fall. Tax hikes are not part of the package and a pledge for a Balanced Budget Amendment vote is.

According to a  Power Point presentation presented by Boehner to the caucus, if the committee’s recommendations are not approved by the end of the year, a “trigger” in the proposal would automatically enact across-the-board cuts — with roughly half of the cuts coming from defense and half from Medicare.

The trigger would be enacted for across-the-board cuts if the joint committee doesn’t reach at least $1.2 trillion in deficit reduction. If that happens, Obama would be allowed to request a $1.2 trillion debt increase and Congress would have to disapprove it subject to a presidential veto.

While the trigger is supposed to hurt as incentive to get Congress to act, other programs like Social SecurityMedicaid, veterans benefits and military pay would be off-limits.

With Aug. 2 put forth as the drop-dead date for a deal or a potential default of the nation’s loans by the Treasury Department, the Senate could begin voting on the legislation early Monday. The House has already approved rules that allow same-day voting on the measure.

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