House to debate debt ceiling bill as GOP confronts last-minute holdouts in a test of McCarthy's leadership

[essentialsaltes]

After a handful of moderate and conservative Republicans aired concerns with the bill overnight -- jeopardizing its passage -- Republicans tweaked the legislation in hopes of holding a vote Wednesday.​

The House is set to begin debate Wednesday on a Republican bill to raise the U.S. debt ceiling, slash federal spending and repeal some of President Biden’s top legislative accomplishments, as Speaker Kevin McCarthy (R-Calif.) embarks on a last-minute scramble to win over a handful of holdouts in his ranks.

With a vote expected as soon as this afternoon, top GOP lawmakers have expressed a measure of confidence even as they acknowledge they have little room for error, since their slim advantage — and persistent ideological schisms — could easily frustrate their plans. Overnight, Republican leaders even tweaked their bill in an attempt to assuage skeptics and cobble together the 218 votes needed for passage, defying their own, earlier promises to leave the legislation intact.

By Tuesday night, there were about a dozen skeptical moderate and conservative lawmakers who privately expressed various misgivings with the legislation.

Some GOP centrists, especially those from Midwestern states, expressed concern that a repeal of Biden-backed climate programs could cancelfederal tax credits for ethanol production and solar energy, potentially harming their districts. Conservatives, meanwhile, said they hope to push the bill further right politically, particularly by imposing work requirements sooner on low-income Americans enrolled in programs such as Medicaid and food stamps.

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Just as a reminder: The debt ceiling was subject to less partisan controversy during the Trump presidency, when the administration and its supporters prioritized tax cuts over a balanced budget. The ceiling was suspended three times: from September 30, 2017, to December 8, 2017, later extended to March 1, 2019, and from August 2, 2019, to July 31, 2021.

Of course, that was then, this is now. Rather than a relatively clean bill to avoid defaulting on our debts, the House GOP now wants to try to attach various strings. It's not yet clear if McCarthy has what it takes to get it through his own members, much less the Senate and the president.

 

[essentialsaltes]

Squeaked it through 217-215.

Facing a revolt from Midwestern Republicans over doing away with biofuel tax credits that were just signed into law last year by Biden — a law many of them voted against — GOP House members relented and allowed the tax credits to stay on the books in their bill.

“Our delegation has stood united for Iowa’s farmers and producers fighting to amend the bill to protect biofuels tax credits,” said the four House Republicans from Iowa in a joint statement announcing their support for the bill.

In exchange for raising the debt limit by $1.5 trillion into 2024, the bill would roll back overall federal spending and:

• Eliminate unspent COVID-19 funds.
• Impose stricter work requirements for recipients of SNAP benefits, formerly known as food stamps, and other government aid.
• Halt Biden’s plan to forgive up to $20,000 in student loan debt.
• End many of the renewable energy tax breaks Biden signed into law last year. It would tack on a sweeping Republican bill to boost oil, gas and coal production.

Democrats derided the Republican plan as a “ransom note,” a “shakedown” and “an unserious bill” that was courting financial danger.

The Treasury Department is taking “extraordinary measures” to pay the bills in the meantime, but funding is expected to run out this summer. Economists warn that even the serious threat of a federal debt default would send shock waves through the economy.

So when this dies in the Senate, hopefully we can get a clean bill to raise the debt ceiling passed quickly.

 

[Say it aint so]

I am not a advisor, but what would happen if the Schumer led Senate just clawed back the covid money as a point of compromise, and sent it right back to the House?

 

[essentialsaltes]

I am not a advisor, but what would happen if the Schumer led Senate just clawed back the covid money as a point of compromise, and sent it right back to the House?

The GOP should jump at that 'compromise'.

Democratic position: C'mon guys, we can't tank the economy over a fake accounting gimmick that has nothing to do with actual spending. Let's just raise this arbitrary number as we've done many a time.
GOP position: No, we also want a large chocolate cake.
Compromise: How about 90% of a large chocolate cake?

 

[Laodicean60]

Why are we having to raise the debt ceiling every few months now?

 

[essentialsaltes]

Why are we having to raise the debt ceiling every few months now?

What the Republican Speakers have been doing recently is funding the government every few months, by kicking the can down the road a few months each time. They keep saying they will come up with a GOP funding plan (budget) that will address conservative priorities, but they have been unable to get any agreement within the Republican caucus.

The debt ceiling was last raised in December 2021. In 2023, the debt ceiling was suspended with a strongly bipartisan vote 314-117 in the House. The debt ceiling will pop back into existence on January 1st, 2025 for the next president and Congress to deal with.

 

[Laodicean60]

What the Republican Speakers have been doing recently is funding the government every few months, by kicking the can down the road a few months each time. They keep saying they will come up with a GOP funding plan (budget) that will address conservative priorities, but they have been unable to get any agreement within the Republican caucus.

The debt ceiling was last raised in December 2021. In 2023, the debt ceiling was suspended with a strongly bipartisan vote 314-117 in the House. The debt ceiling will pop back into existence on January 1st, 2025 for the next president and Congress to deal with.

How long has the can been kicked? We have a 120% debt-to-GDP ratio.

 

[essentialsaltes]

How long has the can been kicked? We have a 120% debt-to-GDP ratio.

Speaker Johnson's plan breaks the budget in two pieces.

[The first can is kicked to] January 19 and would include military construction, Veterans Affairs, transportation and housing as well as the Energy Department. The second part of the bill, which would extend funding until February 2, would include funding for the rest of the government.

 

[Laodicean60]

Speaker Johnson's plan breaks the budget in two pieces.

[The first can is kicked to] January 19 and would include military construction, Veterans Affairs, transportation and housing as well as the Energy Department. The second part of the bill, which would extend funding until February 2, would include funding for the rest of the government.

If you were born 10 years ago I could understand you not being able to answer the question but how did we get to 120% debt to GDP?

 

[essentialsaltes]

If you were born 10 years ago I could understand you not being able to answer the question but how did we get to 120% debt to GDP?

Oh, I thought you meant kicking the can forward.

You can see Reaganomics, the 2008 debt crisis, COVID-19... the only real downturn since 1980 was under Clinton with his tax increase on wealthy Americans (and a booming (partly dotcom fueled) economy).

 

[Laodicean60]

You can see Reaganomics, the 2008 debt crisis, COVID-19... the only real downturn since 1980 was under Clinton with his tax increase on wealthy Americans (and a booming (partly dotcom fueled) economy).

Nice graphics and correct about dotcom. I know you want to stir up hate because you don't like Republicans but you have to realize both parties are to blame. The spending by both parties has brought us to this point. Americans should be telling their politicians to reduce spending in all areas. If you look at our credit rating downgrades foreign investors will no longer want to pay for our debt. They see what we are doing with our spending as unsustainable and printing money is not an answer but the cause of reckless spending, noticed since the GFC 2008.