On Wednesday House Speaker Kevin McCarthy officially submitted a Republican proposal to lift the debt ceiling by $1.5 trillion dollars while cutting federal spending and clawing back billions in unspent funds allocated during the COVID-19 pandemic.
President Biden’s reckless spending created record inflation, made us more dependent on China, and undermined Social Security and Medicare. Since he's been in hiding, House Republicans will take action by passing a responsible debt limit increase. https://t.co/YS11O6kqtK
— Kevin McCarthy (@SpeakerMcCarthy) April 19, 2023
Heritage Action praised the proposal.
“Saving an estimated $4.5 trillion over the next 10 years, House Republicans’ debt ceiling proposal would be historic and they should be commended. Following the recommendations of Heritage Action and grassroots conservatives, this plan would rein in the bureaucratic state and put the American economy on track for recovery by limiting federal spending, rolling back partisan programmatic priorities, and implementing pro-growth reforms," the group released in a statement.
"By capping overall federal spending at fiscal year ‘22 levels, instituting annual limits for budget growth, and rescinding unspent COVID-19 emergency response funding, this proposal would save taxpayer dollars and put the American people in the driver’s seat. Additionally, this plan would halt the weaponization of the federal government and roll back Left-wing partisan priorities the American people overwhelmingly oppose, including student loan 'forgiveness,' Green New Deal-style handouts, and funding for 87,000 new IRS agents," they continued.
But President Joe Biden, who claimed he wanted to negotiate a debt ceiling increase in good faith, is slamming the proposal with false accusations and refusing to say whether he's open to negotiation. For months, the White House has said they will not accept any proposal that doesn't raise the debt limit without conditions.
"Yesterday, Speaker McCarthy sided with the extreme MAGA wing of his conference and released a blueprint to devastate hard-working American families. MAGA House Republicans are holding the American economy hostage in order to take a hatchet to programs Americans rely on every day to make ends meet," White House Press Secretary Karine Jean-Pierre released in a statement. "Every House Republican who votes for this bill is voting to cut education, veterans medical care, cancer research, meals on wheels, food safety, and law enforcement. To offshore American manufacturing and kill good-paying jobs. To take health care away from millions of Americans and threaten food assistance for hundreds of thousands of older people. To increase energy bills and raise taxes for hard-working families. To slash programs hard-working Americans depend on even as they protect wealthy tax cheats and continue to push tax giveaways for the wealthiest and big corporations."
"That stands in stark contrast with President Biden’s Budget, which Invests in America, lowers costs for hardworking families, and cuts the deficit by asking the super-wealthy and largest corporations to pay their fair share. House Republicans must avoid default and stop playing economic brinkmanship with the American people’s livelihoods and retirements. The American people have made clear which economic vision they support," she continued.
The U.S. debt currently sits at $31.6 trillion.