House Speaker Kevin McCarthy is hailing his debt ceiling negotiations as the “biggest spending cut” ever voted on by Congress as a House vote on the bill is scheduled for on Wednesday.
McCarthy reached formal agreements with President Joe Biden on Sunday to raise the $31.5 trillion debt ceiling after months of debate between the White House and the top Republican in Congress. The final deal, the Fiscal Responsibility Lawit would extend the deficit limit through 2025 and cap federal spending in 2024 and 2025 except for defense and veterans funding.
The proposal was finalized just days before the Treasury Department’s June 5 estimate of when the federal government would default on its debts. On Wednesday, the legislation will undergo its first congressional test in front of the GOP-led House after the House Rules Committee. voted 7-6 Tuesday night approve the rules that allow the bill to be debated by the plenary session of the chamber.
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Despite Biden and McCarthy calling for support from lawmakers, both leaders have faced pushback in the 99-page final negotiation. A Democratic lawmaker called the bill “bad policy” when it was released Sunday, and a growing number of Republicans in the House vowed to vote against the bill once it reaches the floor.
McCarthy, however, touted the bill Tuesday night after the Congressional Budget Office (CBO) released its prediction how the Fiscal Responsibility Act would impact the federal budget over the next two years, including reducing the federal deficit by nearly $1.5 trillion over the next decade as the bill currently stands.
“Newly confirmed by the non-partisan [CBO]McCarthy tweeted. “This will be the BIGGEST SPENDING CUT Congress has ever voted on. $2.13 trillion!”
It’s unclear how McCarthy got his final tally of $2.13 trillion. The CBO said in its letter to the speaker that discretionary spending would be reduced by a total of $1.3 trillion and mandatory spending would be reduced by $10 billion.
news week contacted McCarthy’s office via email for clarification.
To raise the debt ceiling, the White House agreed to keep non-defense spending stable through 2024, with the limit increasing by 1 percent in the 2025 budget. Biden also agreed to reallocate $20 billion. it was planned to boost the Internal Revenue Service (IRS), an agency that Republicans have been trying to cut for some time.
Republicans, however, have had to back down from some of their most pressing demands, including a cut in federal spending on food assistance programs. The White House also negotiated waivers for homeless, veterans and foster children in the deal, a move federal officials called “very positive reform.”
However, with a growing number of House Republicans speaking out against the bill, it’s unclear whether McCarthy’s support will be enough to pass the debt ceiling plan in the Democratic-controlled Senate before of June 5. Two House Democrats will also be barred from voting this week, making Republican approval of the speaker all the more important.
On Monday, Biden told reporters outside the White House that there was “no reason” the debt ceiling couldn’t be raised before the looming deadline.
“I’m sure we’ll get a vote in both chambers and we’ll see,” he added.