WASHINGTON (AP) — Negotiations to increase the nation's debt ceiling shifted to Congress where Republican and Democratic leaders were assessing the mood of their members even as an intricate but potentially face-saving deal to avoid an unprecedented government default was taking shape in the Senate.

With an Aug. 2 deadline looming and no compromise jelling at the White House, President Barack Obama had to settle Friday for asking congressional leaders to take three deficit reduction options to their members to see which, if any, could win a vote in the House and Senate.

Meanwhile, a proposal the White House has termed a "fallback option" was taking root in the Senate as a likely alternative to the brinkmanship that has defined negotiations to secure an increase in the government's borrowing authority.

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