"Republicans have tried to persuade the president of the need for a course correction," said McConnell. "But weeks of negotiation have shown that his commitment to big government is simply too great to lead to the kind of long-term reform that we need to put us on a path to balance and economic growth."

McConnell and Senate Majority Leader, Democrat Harry Reid have been working with the White House on one option to resolve the debt issue, which reports say would involve $1.5 trillion in spending cuts over 10 years, while creating a new congressional panel to examine further deficit reduction.

House Speaker Boehner on Monday accused Mr. Obama of being unwilling to cut spending and restrain the growth of government, adding that the president needs to "demonstrate more courage."

Announcing that the Senate will remain in session until the debt ceiling issue is resolved, Majority Leader Reid challenged what he called "irresponsible Republicans" who maintain that failing to raise the debt ceiling would not have disastrous effects.

"Those who say this crisis would be a blip on the radar are wrong," said Reid. "Default would be a plague that could haunt, and would haunt, our nation for years to come."

President Obama's spokesman, Jay Carney, told reporters that contrary to what some congressional leaders say "for public consumption," all of those involved in the negotiations are unanimous on the need to reach a debt ceiling solution before the August 2 deadline.

Carney added that even if the biggest possible debt ceiling package advocated by the president is not achieved, there will be a "fall back position" in which Congress will act to avert a government default on its obligations.  

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