Pelosi to Obama: Dems 'Firm' in Opposition to Entitlement Cuts

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Pelosi to Obama: Dems 'Firm' in Opposition to Entitlement Cuts

Published July 08, 2011

FoxNews.com

House Minority Leader Pelosi, coming out of a meeting with rank-and-file

Democrats, declared Friday that lawmakers in her party are " firm " in their

opposition to Medicare and Social Security benefit cuts, as the White House puts

entitlement programs on the table in bipartisan deficit-reduction talks.

Pelosi's comments underscore the tension flaring within the Democratic caucus

over the potential course of talks as they pick up steam after temporarily

breaking apart amid GOP objections. As President Obama coaxes Republicans back

to the bargaining table, Democrats are expressing concern that he might offer

too many concessions in order to gain their support on raising the debt ceiling

before an Aug. 2 deadline.

" They're as firm as ever on what I have been saying, " Pelosi told reporters

Friday afternoon, as she shuttled between meetings. She said Democrats do not

want to " subsidize tax cuts for the rich " on the backs of seniors and others,

and are demanding " no benefits cuts in Medicare and Social Security. " She also

said she has " serious concerns " about what might happen with Medicaid.

" This is a big deal. ... It's a 10-year bill and we want to work together to

have something that has bipartisanship, that has balance, " she said. " It has to

be reflective of our values. "

Still, ahead of another meeting scheduled for Sunday evening, Pelosi said she's

" optimistic. "

With Democrats demanding entitlements be left alone and Republicans demanding

steep cuts without tax hikes, the president has a heavy lift in trying to

reconcile the two sides in pursuit of a deal.

Republicans are not on the same page as Obama either. House Speaker Boehner

said Friday there is " no imminent deal " and Republicans still have " serious

disagreements " to work out. But a senior House Republican source told Fox News

that the president's contribution in Thursday's meeting was seen on their side

of the aisle as progress.

The most vocal backlash over the talks appears to coming from the left,

particularly from Democrats still feeling burned over the president's deal with

Republicans late last year to temporarily extend the Bush tax cuts.

" If a deal involves Medicare, Social Security, and Medicaid, that has political

consequences that would befall both parties, " Rep. Grijalva, D-Ariz., said.

After Pelosi met Friday morning with Obama, sources told Fox News she told the

president directly that revenues must be on the table and her caucus will not

compromise on Medicare.

The House Progressive Caucus told Obama Thursday that Medicare, Medicaid, and

Social Security entitlement programs should be off the table in any negotiations

over raising the nation's debt limit. They added that any deal must include an

increase in revenues in order to pass muster with their voting bloc.

Republicans have insisted that they will not accept tax hikes as part of the

deal -- though they've opened the door to discussing tax " loopholes. "

In the House, Obama technically doesn't need Democrats to approve a

deficit-reduction deal considering the size of the GOP majority. Democrats still

control the Senate, but there are several moderate Democrats in the chamber who

could get behind a " grand bargain " that drives down spending significantly.

The White House is increasingly talking about a major compromise that achieves

far more in deficit reduction than was originally discussed.

" Bigness is our target, " White House Press Secretary Jay Carney said Thursday,

after Obama finished meeting with eight congressional leaders at the White

House. He compared the negotiations to those that yielded a balanced budget

during the Clinton administration.

" The opportunity to do something this significant does not present itself very

often. The stars, in some ways, have aligned here because of the circumstances

of the economy, the dynamic in Washington, the recognition by members of both

parties of what the problem is in a very real sense, " Carney said.

The president is calling on both parties to give ground.

" Everybody acknowledged that the issue of our debt and our deficits is something

that needs to be tackled now, " Obama said Thursday after the bipartisan meeting.

" And everybody acknowledged there's going to be pain involved politically on all

sides. "

Fox News' Chad Pergram contributed to this report.