McCarthy Puts Forth Debt Limit Legislation
The House will return to Washington, D.C., on Tuesday, April 25, to resume legislative business, and speaker Kevin McCarthy and Republican leadership will work to rally support for passage of legislation to increase the federal government’s borrowing authority before they recess on Friday, April 28. Republicans are calling the bill the Limit, Save, Grow Act.
The GOP bill would, among other things, raise the debt ceiling by $1.5 trillion (or through March 31, 2024, whichever comes first), set discretionary spending at FY 2022 levels, and cap future increases at 1% annually. It would also rescind unspent COVID-19 relief money, stop President Joe Biden’s student loan forgiveness plan, and repeal clean-energy subsidies and IRS funding from last year’s Inflation Reduction Act.
McCarthy has voiced confidence that the legislation will pass the House, but Republicans hold only a four-vote advantage in that body. Biden and Congressional Democrats have dismissed the proposal, but passage of the bill could force Biden to ease up on his demand that Congress pass a “clean” debt ceiling increase.