McCarthy debt ceiling plan would reduce deficit by $4.8 trillion over next decade, CBO says

The debt ceiling package proposal by House Speaker Kevin McCarthy (R-CA) is making waves in Washington. According to an estimate by the Congressional Budget Office, the proposal could reduce the nation’s deficit by a whopping $4.8 trillion over the next 10 years.

McCarthy’s “Limit, Save, Grow” plan seeks to raise the debt ceiling over the next year either by $1.5 trillion or until March 31, 2024, whichever comes first. The proposal aims to cool inflation and limit government spending by reducing discretionary funds to pre-pandemic levels and capping budget increases at 1% each year, among other provisions.

But not everyone is on board. Several House Republicans have already voiced opposition to some provisions, threatening to withhold their support if their demands aren’t met.

If enacted, McCarthy’s plan would cut discretionary spending by roughly $3.2 trillion over the next decade and decrease mandatory spending by about $0.7 trillion, according to CBO estimates. Meanwhile, revenues would increase by $0.4 trillion by 2033. As a result, interest on the public debt would decrease by $0.5 trillion, according to the report.

The Rules Committee is meeting on Tuesday to discuss whether to advance the bill to the House floor for consideration, with lawmakers considering a number of amendments. Top Republican leaders have remained adamant they won’t accept any changes to the bill and will force it for a vote sometime this week.

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However, at least eight House Republicans have indicated they may vote against the measure, putting McCarthy below the threshold needed to pass the legislation. When asked if he would make changes to get more GOP lawmakers on board, McCarthy told NBC News, “We’ll let you know.”