Republicans want debt limit raised through May 2024 – if there’s big cost cuts and 1% budget increase limit each year: GOP takes first step in negotiations with Biden as summer deadline fast approaches
- The House GOP leadership has informally begun putting together a proposal to share with rank-and-file members when Congress returns to session next week
- House Speaker Kevin McCarthy and President Biden remain deadlocked over the debt ceiling and haven’t discussed it in over two months.
- After cutting spending to fiscal 2022 levels, the leadership is also considering capping total discretionary spending, or non-defense discretionary spending.
Republicans have begun developing a plan to raise the debt ceiling through May 2024 in return for cutting spending to fiscal 2022 levels.
House GOP leadership has informally begun putting together a proposal to engage with rank-and-file members when Congress returns to session next week — House Speaker Kevin McCarthy and President Biden remain on the hook over the debt ceiling and haven’t discussed it. in more than two months.
In exchange for raising the country’s borrowing limit to more than $31.4 trillion, Republicans will demand a decline in spending and a cap on budget growth of 1 percent annually for the next decade, according to Punchbowl News a report.
After cutting spending to fiscal 2022 levels, which would be a $131 billion cut from current levels, the leadership is also considering capping total discretionary spending, or non-defense discretionary spending. The cap being thrown is $584 billion on non-defense discretionary spending, excluding Veterans Affairs programs.
Republicans, led by Speaker McCarthy above, have begun developing a plan to raise the debt ceiling through May 2024 in return for cutting spending to fiscal 2022 levels.
Rep. Jarrett Graves, R-LA, is leading the new plan.
The proposal would also eliminate unspent Covid-19 money, cancel some of Biden’s priorities — banning student loan forgiveness and getting rid of some green tax credits, and establishing stricter work requirements for social programs.
Republicans also want to include in their budget deal their sprawling energy package, the House-passed Human Resources 1, and the REINS Act that limits regulation.
The House GOP is expected to announce its full budget this month. The nation reached its borrowing limit in January and the Treasury said it had to take “extraordinary” measures by shuffling money in different accounts to keep the government running. These drying procedures are scheduled to take place during the summer, sometime between June and September.
Rep. Garrett Graves, R-LA, is leading the new plan that would cancel unspent Covid-19 funds, and eliminate some of Biden’s priorities
Kevin McCarthy and President Biden remain deadlocked over the debt ceiling and haven’t discussed it in over two months
Since the Republicans took over the House, both sides have been at odds over how to raise the nation’s borrowing limit. Biden said Congress needed to pass raising the debt ceiling without cutting spending and McCarthy said he would only agree to raising the debt limit in exchange for spending cuts.
McCarthy demanded that Biden invite him to the White House again to settle their differences. Biden also asked the speaker to release his GOP budget before coming to the negotiating table.
Biden unveiled his own $6.8 trillion spending package last month that was derided by Republicans. Since then, the far-right freedom group’s expenditures have been criticized by the White House for its budget priorities.
The political standoff has raised fears that the country could experience its first-ever default, which would be devastating to the economy — both in the United States and abroad.
