All eyes will be on House Speaker Kevin McCarthy (R-CA) this week to see whether he unite a divided Republican caucus to support his plan to raise the debt ceiling and cut federal spending.
The House’s vote on the Limit, Save, Grow Act, expected on April 26, represents McCarthy’s first significant test since winning the gavel earlier this year.
As The Dallas Express previously reported, McCarthy had to make considerable concessions to those within his own party that opposed his appointment as House Speaker. Among them, to assuage the Freedom Caucus, McCarthy agreed to block any increase in the debt ceiling unless Democrats meet Republican demands on discretionary spending.
The Limit, Save, Grow Act would increase the debt limit by $1.5 trillion, the government’s discretionary spending would return to the fiscal year 2022 levels, and annual spending growth would be capped at 1% for a decade, per The Wall Street Journal.
If the bill passes the House, this would put pressure on President Joe Biden to make policy concessions. It specifically aims to drop Biden’s plan to cancel student loan debt, rescind provisions made to the IRS, and cut energy and climate tax credits enacted by the Inflation Reduction Act.
At the same time, Senate Majority Leader Chuck Schumer (D-NY) has referred to the bill as “a partisan wish list masquerading as legislation” that has no chance of passing the Senate, per the WSJ.
Nonetheless, McCarthy seems optimistic about getting the bill passed in the House.
“I think we’re in very good shape,” McCarthy said, per the WSJ. “We’re working, talking through all the members.”
But advancing the bill won’t be easy.
McCarthy needs 218 votes to approve the bill. If all Democrats vote against it, then no more than four Republicans can oppose the bill without derailing it.
Rep. Matt Gaetz (R-FL) has said that he seeks certain modifications to the bill, including increasing the work requirements for recipients of Medicaid from 20 hours per week to 30 hours, per NBC News.
For his part, Rep. Andy Biggs (R-AZ) is hesitant about increasing the debt ceiling by $1.5 trillion, per NBC News.
Some, like Rep. Chip Roy (R-TX), are still considering the bill, per the WSJ.
“There’s a lot of good stuff there,” Roy said, per the WSJ. “There’s a few details we’re still working out.”
As the bill is discussed in the House, a potential default on U.S. debt looms.
It is yet to be determined exactly how long lawmakers have to avoid a default, although analysts at Goldman Sachs have projected that the Treasury might not be able to pay the government’s bills in June, per the WSJ.
