First of all remember that the WH wanted a clean debt limit bill originally and to work on the budget as a separate matter. It was the tea party clowns in congress – Canter and Ryan – that insisted on tying the debt limit to cuts in spending. The WH said fine and presented it’s outline for cuts. The dems in congress as well as the WH then insisted that cuts had to be accompanied with revenue.
The repugs balked at this. Also the WH wanted it to be clearly a bi-partisan bill. Meaning any cuts to entitlements or military would also be owned by the repugs. At this the senate minority leader, Mitch McConnell said no. He would not sign on to anything that made them look bad and the WH look good. If the WH wanted to raise the debt limit, it had to go it alone.
At this the tea party loonies in the house went crackers. So, what we have now is the establishment repugs at odds with the tea party goof balls and the Speaker of The House refusing to put them in their place. This is the first time I remember a majority leader or speaker, in the senate or the house, of either party letting some junior congressmen run the show. Newt most certainly would not have done that or Hasert or Sam Rayburn or any of them.
Eventually a bill like the one Mitch McConnell outlined will get agreed upon. The WH may symbolically grouse but will sign it. But it brings up just how dysfunctional Washington has become.