House Passes GOP Debt Limit Bill, Boosting McCarthy’s Position in Standoff With Biden

Republicans in the House of Representatives have passed a plan to temporarily raise the debt ceiling while cutting future spending. The vote was 217-215 and came less than 24 hours after the bill was introduced, which irked Democrats who complained about the lack of time to read and debate the bill. The move is seen as a starting point for a discussion on federal spending with Democrats, who hold both the Senate and the White House and can reject the legislation if they choose.

The bill would raise the nation’s debt ceiling by $1.5 trillion, temporarily relieving anxiety about the prospect of a default on the nation’s financial obligations. The increase would expire on March 31, 2024, requiring another vote in less than 12 months. The bill would also reduce discretionary spending to the 2022 level, limit spending increases to 1 percent annually for 10 years, and reinstate work requirements for some recipients of SNAP and Medicaid.

Start of Negotiations

House Speaker Kevin McCarthy’s aim is to use the bill to force President Joe Biden to negotiate over cuts to federal spending, something the president has refused to consider. Republican Caucus Chair Elise Stefanik repeated that goal at a press conference hours ahead of the vote.

“President Biden has been missing in action on the debt ceiling, refusing to negotiate, and putting our economy and the livelihoods of hardworking American families at risk,” Stefanik said. “President Biden must work with us who represent the American people to address our nation’s spending and debt crisis.”

What’s in the Bill

The bill would also rescind most green energy tax cuts and reduce bureaucratic obstacles to domestic energy production. Despite the spending cuts and caps, some House Republicans were leaning against voting for the bill on the day before the vote. The speaker spent the evening of April 25 wrangling votes from reluctant caucus members.

Then, during the early morning hours of April 26, Republicans on the House Rules Committee introduced three amendments that appear to be aimed at mollifying holdouts. One amendment would reinstate work requirements for some recipients of SNAP and Medicaid in 2024, a year sooner than planned. A second would preserve three biofuel tax credits while other green energy tax credits were rescinded by the bill. The third would rescind certain funding from the Inflation Reduction Act, including those designated for green building construction, Energy Department loan guarantees, deferred maintenance for national parks, air pollution reduction, and a neighborhood access and equity grant.

Republican leaders attempted to downplay the 11th-hour amendments as “technical changes.”

Conclusion

The passing of the bill is a win for House Speaker Kevin McCarthy, who engineered a majority vote among the fractious Republican caucus in the narrowly divided House. However, the bill is expected to be vetoed by President Biden if it reaches his desk.