- Title: McCarthy defends debt deal amid pushback from hardline Republicans
- Date: 30th May 2023
- Summary: WASHINGTON, D.C., UNITED STATES (MAY 30, 2023) (REUTERS) (SOUNDBITE) (English) HOUSE MINORITY LEADER HAKEEM JEFFRIES SAYING: "President Biden has avoided a catastrophic default, which would crash the economy and hurt millions of everyday Americans. Second, President Biden has arrived at a resolution that would suspend the debt ceiling for at least two years and avoid a hos
- Embargoed: 13th June 2023 21:27
- Keywords: Congress Credit rating Debt ceiling Default Hakeem Jeffries Kevin McCarthy Senate
- Location: WASHINGTON, D.C., UNITED STATES
- City: WASHINGTON, D.C., UNITED STATES
- Country: US
- Topics: Budget/Taxation/Revenue,North America,Government/Politics
- Reuters ID: LVA002626830052023RP1
- Aspect Ratio: 16:9
- Story Text: Top congressional Republican Kevin McCarthy on Tuesday (May 30) urged reluctant members of his party to support a bipartisan deal to lift the $31.4 trillion U.S. debt ceiling and avoid a catastrophic default.
Earlier on Tuesday, members of the hardline House Freedom Caucus held a news conference to attack the agreement, which they said did little to address the U.S. debt problem or to rein in government spending.
"When the Freedom Caucus talked about want[ing] the spending back to 2022 [levels]," McCarthy told reporters, "the non-defense [portion] is back lower than 2022."
A vote in the House on the debt deal could come as soon as Wednesday night if procedural obstacles are overcome, but several far-right Republican members have said they will not support it.
Top House Democrat Hakeem Jeffries said his caucus would provide votes to help pass the bill through the chamber, which Republicans control by a 222-213 margin.
"[I am] confident that we will avoid a catastrophic default," Jeffries told reporters on Capitol Hill.
If the deal passes the House, a Senate vote could possibly stretch into the weekend if lawmakers in that chamber try to slow its passage. At least one, Republican Mike Lee, has said he may try to do so.
The bill would suspend the U.S. debt limit through Jan. 1, 2025, allowing Biden and lawmakers to set aside the politically risky issue until after the November 2024 presidential election.
It would also cap some government spending over the next two years, speed up the permitting process for some energy projects, claw back unused COVID-19 funds, and introduce work requirements for food aid programs for some poor Americans.
"The thing that's very interesting here is the largest savings in American history," said McCarthy, when asked about the hard-liners' concerns, "the unshackling of - finally - wasteful Washington spending getting rescinded."
Biden can point to gains as well. The deal leaves his signature infrastructure and green-energy laws largely intact, and the spending cuts and work requirements are far less than Republicans had sought.
Republicans have argued that steep spending cuts are necessary to curb the growth of the national debt, which at $31.4 trillion is roughly equal to the annual output of the economy.
The Treasury has estimated that the debt ceiling must be raised or suspended by June 5th to stop the nation from running out of money to pay its bills and falling into default, which many fear could prove catastrophic for the U.S. economy.
(Production: Julio-Cesar Chavez / Tom Rowe) - Copyright Holder: REUTERS
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