US Congress to consider a $1 trillion question

US Vice President Joe Biden said Tuesday that the Congress is considering a new $1trillion project in deficit-cutting measures as part of a possible deal that would allow America to increase its borrowing authority before August 2 deadline.

"I think we're in a position where we'll be able to get well above $1 trillion pretty quick in terms of what would be a down payment on the process," Biden said after a three-hour meeting on Capitol Hill with top lawmakers.

Republicans have said that any deal to raise the debt limit would have to include spending cuts of equal size.

With a $1 trillion "down payment" Congress would be able to support a debt-limit increase which would cover the country's borrowing needs roughly through February 2012. The problem should be considered by Congress before the November 2012 elections.

Democrats and Republicans agree that the United States needs to reduce budget deficits by $4 trillion over the coming decade to ensure its debt remains at a manageable level.