Progress on deal to avoid U.S. default stalls. Steve Handelsman reports.
An agreement to cut government spending and raise the debt ceiling in order to avoid U.S. default is running into trouble before it can be finished.
President Obama went out to sell the plan at University of Maryland Friday, saying Americans will suffer if the debt ceiling is not raised.
He said any deal would have to hike taxes and slash social programs like Medicare.
House Speaker John Boehner denied he and the president agreed to cut spending now and raise revenue later.
"There was no agreement, publicly, privately, never an agreement and frankly not close to an agreement," Boehner said.
Boehner wanted Friday's focus on the House's Tea Party backed balanced budget amendment.
Senate Democrats defeated the bill, with South Dakota's Kent Conrad describing it as "The stupidest Constitutional amendment I think I have ever seen."
Besides the Obama-Boehner so-called "Grand Bargain", the Gang of Six bipartisan Senate plan is still in play.
The short term McConnell-Reid plan, after losing much support, is now on a back burner.
NBC Newschannel