Harry Reid Delays Vote on His Debt Plan. Reportedly, a Deal With Republicans Has Been Struck

Reid delays vote on his debt plan.

Efforts to reach a last-minute deal to stave off a potentially disastrous federal default appeared to make progress late Saturday as Senate Majority Leader Harry Reid called off a scheduled 1 a.m. Sunday test vote and declared himself newly “optimistic.”

Reid (D-Nev.) scheduled a new vote for noon Sunday, saying he wanted to give the parties more time to negotiate. Talks were underway at the White House, he said, and progress was being made toward the Democratic demand for a long-term debt limit increase that would carry the government through the end of 2012.

A deal has been struck?

ABC News has learned that Republicans and the White House have struck a tenative deal to raise the debt ceiling before the Aug. 2 deadline. It’s not done yet, but here is the framework of the tentative deal they have worked out, according to a source familiar with the negotiations:

* Debt ceiling increase of up to $2.8 trillion
* Spending cuts of roughly $1 trillion
* Vote on the Balanced Budget Amendment
* Special committee to recommend cuts of $1.8 trillion (or whatever it takes to add up to the total of the debt ceiling increase)
* Committee must make recommendations before Thanksgiving recess
* If Congress does not approve those cuts by late December, automatic across-the-board cuts go into effect, including cuts to Defense and Medicare.