Republicans In Congress Share Debt Ceiling Proposal

Republicans in Congress have unveiled their long-awaited proposal for lifting the debt ceiling while also cutting spending, and already Democrats and the president are rejecting it, saying the two cannot be linked. 

From the moment Republicans regained control of the U.S. House, they promised they would only vote to increase the nation’s borrowing capacity, if that were part of legislation that also reduced federal spending, and this week they made clear they intend to keep that promise.

"Today I'm proud to announce that we are introducing the Limit Save Grow Act of 2023," said Speaker of the House Kevin McCarthy (R-CA) on the House floor Wednesday.

Speaker McCarthy outlined the measure, which, among other things, would increase the nation's borrowing capacity by $1.5 trillion, while cutting discretionary spending in the FY 2024 budget to 2022 levels. It would then cap annual growth thereafter at 1%.

The bill also calls for repealing the administration's green-energy incentives, boosting domestic oil and gas production, scrapping President Biden's $400 billion student loan forgiveness plan, and clawing back unspent COVID-19 funds.

But Democrats and the president continue to say they want a clean debt ceiling bill.

"Our position continues to be to not negotiate over default," said White House Press Secretary Karine Jean-Pierre at Wednesday's press briefing.

"We can’t have a clean debt ceiling increase," said Rep. Josh Brecheen in an interview this week. "I won’t support a clean debt ceiling increase."

That's because, the 2nd District's Brecheen says, the Republicans would then lose their bargaining chip.

"The leverage the debt ceiling provides is the only opportunity to reverse course on runaway federal spending," he said.

Ultimately, the so-called Limit Save Grow Act would just be a starting point for negotiations.

"We all agree the debt ceiling needs to be raised," said Rep. Tom Cole (R-OK4) in an interview Thursday. "Nobody wants the United States to default on its debt. But we need to change our spending patterns."

The House is expected to take up Speaker McCarthy’s proposal the middle of next week. Republicans believe passing it, which they likely will, would put added pressure on President Biden to sit down for talks.