House Speaker Kevin McCarthy (R-CA) speaks at a rally marking the 100th day of Republican control of the House on April 17, 2023 in Washington, DC.
Nathan Posner | Anadolu Agency | Getty Images
WASHINGTON — House Speaker Kevin McCarthy (R-California) announced Wednesday a plan to raise the debt ceiling by $1.5 trillion over about a year while seeking to eliminate a key component of President Joe Biden’s agenda. .
McCarthy said the bill 2023 Limits, Conservation and Growth Actby limiting discretionary spending, recovering unused pandemic-related funds, eliminating Biden’s student loan forgiveness plan, and cutting funds allocated to the Internal Revenue Service, $4.5 trillion for American taxpayers You can save more than
The reduction comes in exchange for an increase in the debt ceiling for one year. McCarthy urged Biden and Senate Majority Leader Chuck Schumer (D, D) to “sit down and negotiate and deal with this crisis,” but the bill has failed to pass. He didn’t say whether he had enough support. Biden has refused to negotiate a debt ceiling. The special measures to avoid the first-ever U.S. government debt default are set to end this summer.
“Now that they have put in place a clear plan to raise the responsible debt ceiling, they have no excuse and are refusing to negotiate,” McCarthy said.
McCarthy didn’t say when the bill would be put to a vote in the House of Representatives. “I never give up. We get them,” he told NBC News on Wednesday.
Even if the House Republicans pass, the Democratic-controlled Senate is likely to drop the bill.
McCarthy’s announcement comes after days of speculation about a Republican proposal to temporarily raise the debt ceiling for certain cuts, such as a stall in non-defense discretionary spending.
The Speaker also pushed for proposals such as tougher work requirements for adults without dependents, repeal of “Biden’s army of 87,000 IRS agents,” and the president’s student loan forgiveness program. A judge is expected to rule on student loan programs by early summer.
McCarthy also argued that the measure would push more people into the workforce and protect Social Security and Medicare.
“Chairman McCarthy’s proposal is not about work,” Rep. Frank Pallone, DN.J., a senior member of the House Energy and Commerce Committee, said after McCarthy’s announcement. “Republicans don’t believe in our social safety net, so it’s a Trojan horse intended to kick millions out of health insurance using bureaucracy and red tape. We are creating a debt crisis to justify these brutal schemes.”
A narrow Republican majority in the House means McCarthy can only afford to lose a handful of Republican votes given the Democratic opposition.
“Let me be clear, this proposal is void as of its arrival,” Parrone said Wednesday.
The White House has insisted it won’t negotiate the debt ceiling, requiring Congress to pass the full increase and address budgetary concerns separately. White House spokeswoman Carine Jean-Pierre said Wednesday that the administration was aware of McCarthy’s plans to announce the proposal, but accused her of doing politics over Congress’ “duty.”
Biden also adopted McCarthy’s strategy on Wednesday. In a speech in Maryland, the President said, “MAGA Republicans in Congress are threatening to default on the national debt that has collectively accumulated over 230 years unless they do what they say.
– CNBC’s Emma Kinery contributed to this report.
