Republicans seek to raise debt limit until May 2024 as GOP proposal begins to take shape: Report

The Republicans have formulated a plan to lift the debt ceiling, which is expected to be discussed when Congress reconvenes next week. As per reports, the Republican party suggests extending the debt limit until May 2024, provided there are significant cuts in spending. This includes capping budgetary growth at 1% annually over the next ten years. Puck News reported the offer has little chance of success.

The proposed plan also targets some of President Biden’s recent accomplishments by slashing green tax credits, barring student loan forgiveness, imposing work requirements for government benefits, and scrapping unused COVID-19 funds. In its place, the GOP intends to implement its energy plan. Another proposal being considered is a $584 billion cap on nondefense discretionary expenses, led by Representative Garret Graves (R-LA).

Congress has been grappling with the debt ceiling predicament since the start of this year without any breakthrough. President Biden and the Democrats have demanded a clean package without any controversial inclusions, while the GOP, led by House Speaker Kevin McCarthy (R-CA), is determined to make spending cuts. Thus far, neither has shown any sign of compromising.

The US hit its $31.4 trillion debt limit in January, exceeding the permitted borrowing limit. Congress authorized a budget package with a considerable deficit spending last year. The Treasury has been utilizing “extraordinary” measures, including allocation of funds from various accounts, to maintain the government’s programs. However, these measures could dry out between June and September, endangering program funding, including the payment of interest on loans.

McCarthy’s speech on the economy’s status at the New York Stock Exchange is scheduled for next Monday.

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