"You can't get out of this without passing a budget," McCarthy said.
If agreed to by the conference, the plan would kick any potential debt limit breach down the road until after fights over the sequester and federal appropriations have already played out. If those fights yield cuts to federal spending, it would provide the GOP with further cover to increase the debt limit beyond mid-April. However even if Senate Democrats agree to the requirement and pass a budget, it would not constitute a spending cut.
Spokesmen for Senate Majority Leader Harry Reid (D-NV) and Budget Committee Chair Patty Murray (D-WA) were not immediately available for comment, but we'll pass along an update when we get one.