GOP House plan for debt ceiling cuts that may pass in Biden talks.

Debt Ceiling Negotiations: What’s on the Chopping Block?

President Joe Biden and House Speaker Kevin McCarthy are currently in negotiations to increase the debt ceiling, but there are certain aspects of the House GOP’s bill that have been sticking points for Democratic leaders. While Biden has drawn red lines as to what is off limits for cuts, there are still cuts that could survive in the negotiations.

Proposed Cuts in the GOP’s Limit, Save, Grow Act of 2023

Here is a look at the proposed cuts in the GOP’s Limit, Save, Grow Act of 2023 that are not currently on the chopping block:

• Cutting back unspent COVID-19 relief funds: One area where Biden and the GOP may come to an agreement is canceling expenditures of COVID-19 relief funds that have not been spent but were allocated. The White House appears likely to permit this rollback, which would save the federal government an estimated $30 billion over the next 10 years.
• Capping spending levels: The House GOP bill reduces federal spending levels to fiscal 2022 levels, which could provide savings of $3.2 trillion over the next 10 years. The measure provides the biggest cost savings in the Republican bill and could be maintained in a smaller form because it is not one of the key sticking points with Biden and the Democrats.
• Permitting reforms: Another item that has reportedly not been ruled out is permitting reforms. In the Limit, Save, Grow Act, energy permit and regulation reform created an estimated $3 billion in savings over 10 years. Biden has made clear that climate provisions from the Inflation Reduction Act are not negotiable but that permitting reforms regarding energy may be amendable.

Items that are off the table, according to reports, include the Inflation Reduction Act and rolling back Biden’s student loan forgiveness plan. Modifications to SNAP and Medicaid are also off-limits.

Negotiations on the debt ceiling appear to be moving forward despite a canceled meeting between Biden and the “Big Four” this week. Treasury Secretary Janet Yellen has warned that the U.S. will likely default on its debts by June 1 if the debt ceiling is not raised, making for a quick deadline for Congress and the White House.

Rep. Abigail Spanberger has suggested that members of Congress should have their pay withheld until a resolution can be passed to raise the debt ceiling.

Stay tuned for updates on the negotiations.

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