11 07 a. M. The white house issues this statement saying the latest g. O. P. Proposal is a partisan attempt to appease the tea party and that set off a fire storm among democrats. That progress evidently has struck here in the hearts fear in the hearts of the republican whose reckless behavior called upon them to sabotage the bipartisan effort in the United States senate. Extremist republicans in the house are attempting to coimpede the progress with a bill that cant pass the senate, cant pass the senate, and wont pass the senate. Were not going to pay ransom from the American People to the tea party in order to open the government. And that brings to us 3 15 p. M. Eastern. The time the president called House Democrats to the white house. Now, moments ago, talk of another house g. O. P. Plan to be voted on tonight. Were going to get reaction from former president ial candidate Rick Santorum in a moment. First, fox senior capitol hill producer on the latest plan that is now emerging. The headline, please. Reporter this is a new plan, would keep the government open just through december 15th, the tedline the House Appropriations committee chairman, hall rogers, was pushing for help didnt want something that would extend into next year. He thought that was too long. They can write the individual Appropriations Bills and control spending. Second of all, this would be a concrete date on the debt ceiling of february 7th. They dont want to raise the debt ceiling by a certain dollar figure. They want a concrete date, and no extraordinary measures, a term of or the arte which the treasury dep department uses where they go through the couch cushions to keep the government sound. We actually hit the debt ceiling in may but they have been using extraordinary measures since then. This would eliminate that. Is there any sense this is another retreat by the g. O. P. . Its key to watch to see if they can get the votes for this. Theres going to be a lot of republicans say this doesnt go far enough. They want more things on obamacare. They fought for weeks and weeks, bouncing bills and back and forth to do a full repeal. Its obvious there werent the votes for that. So there are provisions curbing obamacare. The question is, will that be enough . One thing that is significant what theyre doing here, this bill is the old continuing resolution. The parliamentary device used to bounce the bills back and forth between the newscast. By using this old bill, they eliminate one opportunity for fill buster in in the senate. Was told by one senior democratic aide, had they had to originate a bill in the senate they would not be able to raise the debt ceiling in time, but by taking this old piece of legislation that went between the house and senate, it resides in the house right now. They can insert the new language and send it to the senate and that saves a lot of time and could potentially keep them from hitting the debt ceiling on thursday. Chad, thanks very much. House republicans at this point not looking like they will be getting very much out of this deal. Democrats today labeling them reckless, radical, appeasing the tea party. How should republicans respond to that . Lets ask former president ial candidate, Rick Santorum. Sounds like the republicans are in full retreat. Sounds lining you got beat. Whats your judgment . Well, certainly doesnt sound good, but what i see from the House Republicans is not a willingness to accept defeat and their resolve to continue to fight for reasonable restraints on spending and reasonable changes to obamacare that ben fit the American Public, and i think they have benefit the American Public, and they have every right to stand form. Theyre not asking for anything radical or extreme. Quite the contrary. What theyre asking for here is fairly minimal, compared to what was on the table just a couple of months ago. I understand this new plan that is just breaking now, theyve retreated in one area. The original plan was they were trying to suspend the medical device tax for two years. That demand has now been dropped. The medical device tax stands. That surely is a retreat. Well, like i said before, dont think if i was the House Republicans i would not retreat from what i think are solid things they can ask for in any negotiation, and be able to stand firm. Look, theyve suffered all the hits theyre going to suffer for, quote, shutting down the government or, quote, creating the default. The polls are as bad as theyre going to get. Capitulation would actually show that show to the American Public they were on the wrong side of the argument. Obamacare is a disaster, its hurting the economy and hurting average people right now, and we need to stand firm and continue to fight on a very practical thing that they have put forward in these negotiations, and not let the ridiculous comments of harry reid and nancy pelosi, calling them extremists or being at the back pocket of the tea party. Thats foolishness. This is the rhetoric they use all the time, this extremist rhetoric that we should not be cowed by anymore. We need to stand up and fight them. If you want to stand up and fight, who in the Republican Party in Congress Stands up against the rhetoric of harry reid and former Speaker Pelosi . Who is there forcefully . Is it a question of personalities . Too you have the personality in congress to stand up and fight . Well, theres certainly a lot of people who have been standing and fighting. The leaders, john boehner, has made some fairly forceful comments. The senate has been, well, say, less forceful and disappointing, but the ball game is in the house. The Senate Republicans are clearly not up for the fight anymore. Which is unfortunate. But i think the house and the house runs should be dish dont think theres anything to be gained by cap capitulation, we d to stand firm and fight for reason changes to make shore the American Public is protected from this horrific law and any type of expansion of government spending. Ever thought it was good idea to let obamacare roll out some destroy itself . Look, what the House Republicans are proposing right now is not stopping obamacare from rolling out. They sort of abandoned that. Theyre talking bat couple of very minor things that are having a devastating impact on workers right now and the economy. And at least they can get rid of some things that even democrats voted for in the past, like getting rid of the medical device tax. That passed with almost half the democrats in the senate supporting it. Rick santorum, thank you for joining us. Thank you. Now the market. Twist, turning, with each Fresh Development throughout the day. The dow opening down big. That was at the opening bell. Cut its losses as republicans offered up their debt limit plan. Then it fell again, when the president and democrats slammed the plan. Then the market sold off more right before the end of closing the end of the trading day. To Fox Business Network sandra smith, what are you hearing about the markets reaction to a potential deal . Well, all bets are on the table. Right now the marketplace is still significantly pricing in a small chance that the government will default on its debt. If you look at how we closed in todays session, the dow, the s p, the nasdaq, all lower. Dow losing 133 points and what some traders are looking at is we sold off to the lows of the session at the close of trade egg, and that can often be a sign that there are a lot of bears in this market, fearful of what is coming next. The bond market, yields are spiking on shortterm government debt. This is usually the safe toast buy. Not so much. Fidelity, citigroup, jp morgan, executives saying they have sold off all their shortterm debt, specifically debt that matures over the next month or so, before october 31st, for the most part, because of a fear of a possible government default. That being said, i want to point out the fact that the stock market is Still Holding on gain from when the government first shut down. In fact the s p 500, gauges the stock market, still posting a 1. 4 gain from the first day the government shut down. So we are Still Holding on to the gains, and, as one trader was exiting the floor i asked him, what does it mean for the markets if we actually see this small chance that the government default . He said it would be a calamity and we could see 500point selloff in the dow in a single day if that happened. Possibly an 800point selloff over self days. So traders are starting to think this could be a possibility. We would wait on the ratings firms to make any decisions. Fox Business Network reporting that the white house us putting pressure on wall street executives to seek out to republicans on extending the debt ceiling. Thats the latest. They helped get obamacare passed. Now are unions about to get a pass . [ crashing ] [ male announcer ] when your favorite food starts a fight, fight back fast with tums. Heartburn relief that neutralizes acid on contact and goes to work in seconds. Tum, tum tum tum tums lets get some clarity on this latest g. O. P. Plan that is emerging. It would be a clean cr, a clean continuing resolution, no strings attached. It will be a clean debt limit increase. No strings attached. Only one item, and that would be the amendment, congress, the cabinet members and white house staff must be subject to obamacare. Thats it. Otherwise its a clean spending and a clean debt bill raising of the debt ceiling. Clean. Thats it. Forget the debt deal for a second. Heres the question. Are unions about to get a sweetheart deal on obamacare. At issue is the reinsurance fee, definedded to help fund the entire law. But unions dont want to pay it and at it looking like lawmakers might cave on it. Stewart is with the National Union of hospital directors. Stewart, as i understand it, this fee goes towards helping people with preexisting conditions, getting their subsidies in line so they can get health insurance. This money from this fee goes towards that. But you dont have to pay it. You have an out on this. You got a pass. We shouldnt have to pay it for three reasons. One is many Union Members are insured under health and Welfare Benefits paid for by both the employer and the union, and theyre selfinsured programs. Theres no Insurance Company involved. Theres no profit involved. Two, those health and Welfare Benefits funds are part of wages. Theyre even calculated as wages. And, three, theyre jointly negotiated. Theyre not just provided by the employer. And, four, finally, unions have been carrying more than our share of the cost of health care because we have provided health care for all of our members, which has helped to Fund Health Care for uninsured people who show up in hospital emergency rooms. Is this the exercise of union clout within the administration . No, no. We dont like obamacare, we want significant changes. This is part of that pressure. Make some changes. No, its not. Its not part of the pressure. The president originally refused our appeal. This is just common sense, that the members of congress, particularly democratic members of congress have picked up, its a totally different deal than a blue cross deal or an aetna deal. These are health and welfare fund that have been around for 100 years in some cases. They go back to do unions support the other side of the coin, which would be, do unions support pushing white house staff, congress people, pushing them into obamacare . We dont have a position on that. That seems like a silly little thing to hold up the if you get pass on the reinsurance woe dont get a pass. A one are year extension. For one year, you have a pass. Why shouldnt you force, therefore, the president , the white house staff, administration, to submit themselves to obamacare . Indicate a quid pro quo, isnt it . No its not a quid pro quo, and really we just dont have a position on it. Why would we push something that we dont have a position on it . If thats the only thing standing between getting the government up and running, paying Capital Police officers, paying fema employees, paying noah people to track hurricanes, and getting a deal on the debt ceiling . Thats pretty small protate toes, stewart. Okay, stu for joining us. We understand what is going on now. Thank you, stewart. Appreciate it. They cooked it. Time for them to eat it. If. If the president thinks so well of obamacare and the vicepresident , he should be in it. Yeah. Republican congressman darryl issa is next. American express credit card, every purchase earns you 2 cash back, which is deposited in your fidelity account. Is that it . Actually. Theres no annual fee and no limits on rewards. And with the fidelity Cash Management account debit card, you get reimbursed for all atm fees. Is that it . Oh, this guy, too. Turn more of the money you spend into money you invest. Its everyday reinvesting for your personal economy. Losing thrusters. I need more power. Give me more power [ mainframe ] located. Ge deepsea fuel technology. A 50,000pound, ingeniously wired machine that optimizes raw data to help safely discover and maximize resources in extreme conditions. Our Current Situation seems rather extreme. Why cant we maximize our. Ready. Brilliant. Lets get out of here. Warp speed. Sign a bill that left himself another of obamacare but put members of congress in, i think its time for president obama to go into obamacare. Now darryl issa. Congressman, i want to get into a discussion of whether or not the president should be in obamacare or not. But first of all, i want to talk about this new g. O. P. Plan, the new house plan, which basically submits a clean cr, no strings attached, a clean raising of the debt limit, no strings attached. That sounds like a republican retreat, isnt it . It also has a twoyear abatement on the medical device tax, something we think is important to keep healthcare costs down. It gets us into a conference when we can really attack the drivers of our deficit, which are entitlements. So, like all grand bargains, everybody is fifthing some giving something and thats all the republicans and leadership, john boehner, every asked for issue is an opportunity to talk about the big issues. Obamacare is a big issue, a big entitlement. If youre 22 or 25 years old and you bay off the exchange youre going to pay as much as triple what you would have paid a year ago. So theres a lot of things to work on. We certainly think obamacare delay was good one, but we also think that dealing with entitlement and cost drivers is very important, too. Congressman, have to tell you fox out of washington is reporting that the twoyear delay in the imposition of the medical tax, the medical twice tax, is no longer part of the plan. All references to the medical device plan are drop. An issue withdrawn by the republicans. That is a retreat, isnt it . Well, it certainly isnt what we were talking about this morning. As you can imagine, since no bill is before us, were all working off the last briefing we had. Heres the important thing, stewart. Were dealing with the Affordable Care act, which is cratering as far as service and meeting expectations. The web fortal is not delivering even 10 of what it should be. Experts who have start looking at the source code call it malpractice in writing it. We spent 400 plus Million Dollars writing the software. We were assured repeatedly it would be on time and would work. Were discovering internally they knew it wasnt on time and wouldnt work and delaying the rules until last november after the election is part of the reason theyre not ready on time. So you take all of that, and those are issues that are surrounding the debate. Are we going to do the right thing for the American People . You tease the president going into the obamacare. I think michelle, the kids and the president congressman should be in healthcare system. Forgive me for interrupting you. We see former Speaker Pelosi walking towards the microphone. Lets listen in to what she has to say. Good afternoon. Beautiful afternoon. We had the privilege of having a conversation with the president about the looming deadline. Were still optimistic there is a path to lift the debt ceiling in time. Were pleased with the work done thus far but we have heard of the Bipartisan Legislation being prepared in the United States senate. Were disappointed the House Republicans decided to sabotage or at least delay what was happening there, but are hopeful Everybody Knows that time of the essence, and if the republicans in the house want to put up a bill, they should do it soon. But they have to know, as it has been describe, they have to leave that 100 republican vote. Our members signed letters sufficient to open government that we are there, clean legislation to open the government, clean legislation to lift the debt ceiling, that would take us on the path to the budget table where any and all issues can be discussed. Im optimistic because i believe the impact of not lifting the debt ceiling on topping alone not lifting the ceiling is so catastrophic that those in the Republican Party will see the light. We stand ready to supply the votes but if they do not if they go and pass it on theyll need 100 republican vote. Madam leader, i agree with the leader this was a very positive meeting, as we expected. Indeed the president is very committed to getting the government open. Obviously making sure that america p bills, and we assure steny hoyer saying it was a very positive meeting with the president. N