1-6-2023 (WASHINGTON) The United States House of Representatives has voted in favor of advancing a bipartisan bill aimed at raising the debt ceiling, which sets a limit on the amount of money the federal government can borrow.
In a late-night session on Wednesday, the House passed the bill by a vote of 314 to 117 after a recorded vote was called. The urgency behind this vote stems from the approaching deadline of June 5, by which the debt ceiling must be lifted to avoid a potential default on loans, an outcome that experts warn could have severe consequences for the US economy.
However, Republican House Speaker Kevin McCarthy faced challenges within his own party as he sought to gather support for the 99-page deal, which would suspend the $31.4 trillion borrowing limit until January 2025.
Members of the far-right faction within the Republican Party criticized the deal as soon as it was announced on Sunday, following days of negotiations between congressional representatives and members of President Joe Biden’s Democratic White House.
One of the main criticisms focused on the proposed spending cuts, which were seen as insufficient by many Republicans. “This deal fails, fails completely,” said Representative Scott Perry of Pennsylvania during a news conference on Tuesday, representing the House Freedom Caucus, a far-right group of representatives. “That’s why these members and others will be absolutely opposed to the deal, and we will do everything in our power to stop it and end it now.”
Another representative at the press conference, Chip Roy of Texas, highlighted the internal division within the Republican Party caused by the terms of the deal. He emphasized the gains made by Republicans during the 2022 midterm elections when they gained a majority in the 435-member House. Roy defiantly stated, “I want to be very clear: Not one Republican should vote for this bill. Not one,” disregarding McCarthy’s efforts.
Ultimately, Republicans constituted about two-thirds of those who voted against the bill, underscoring the criticism from both ends of the political spectrum.
In order for the debt-ceiling deal to pass the House and proceed to the Senate, it needed at least 218 votes. However, even progressive House Democrats expressed their opposition, particularly regarding proposed changes to food assistance programs and other social safety nets.
Representative Pramila Jayapal of Washington State, a prominent Democrat, criticized the deal on Twitter, saying, “This was never about fiscal responsibility or reducing the deficit. This is about hurting poor people and making them pay for tax breaks for the wealthiest while the GOP pushes their cruel, ideological priorities.”
She attributed the failure to raise the debt ceiling “with no strings attached” to the “extreme” members of the Republican Party. Nevertheless, Democratic leaders in the House assured that they would prevent any default from occurring. “Defaulting on our debt and crashing the economy will hurt millions of everyday Americans,” wrote top House Democrat Hakeem Jeffries on Twitter. “Right-wing extremists want to trigger a recession. House Dems will not allow that to happen.”
The White House also defended the deal against allegations that its compromises were too costly during the daily briefing with press secretary Karine Jean-Pierre. She explained, “Here’s the reality. When you negotiate in this way, no one’s going to get everything that they want.” Jean-Pierre emphasized that President Biden aimed to protect the progress made during his tenure and uphold core Democratic values important to American families. She expressed Biden’s confidence that the deal would reach his desk before June 5, mentioning that the White House had made more than 120 one-on-one calls with members of Congress to garner support for the agreement prior to the vote.
The negotiation of this deal, promoted by both McCarthy and Biden, represents a compromise between party leaders who are often at odds with each other. It comes after the Republican-led House passed a bill in April, which Democrats deemed unacceptable. That bill would have raised the debt ceiling by $1.5 trillion but required significant cuts to Biden’s domestic platform and other social programs. Facing the possibility of a Biden veto, the two leaders agreed to negotiate new terms for Congress to vote on.
The current deal proposes suspending the debt limit until 2025, allowing the government to borrow as needed until that time. However, it includes limitations on government expenses. Discretionary spending would be capped at one percent growth over six years, although Congress would need to reassess that cap in 2025. A report from the Congressional Budget Office released on Tuesday indicated that the deal’s discretionary spending constraints could reduce the US deficit by $1.5 trillion from 2023 to 2033. McCarthy has praised it as the “largest spending cut in American history.”
Additionally, under the terms of the new deal, the government would reclaim billions in funding for the Internal Revenue Service (IRS) and unused COVID-19 relief funds, both of which are priorities for Republicans. The deal also includes additional work requirements for recipients of the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps. However, unlike the April bill, no further work requirements would be imposed on Medicaid recipients. Furthermore, the deal preserves tax credits for clean energy initiatives supported by Biden.
As the vote approached on Wednesday, both Republicans and Democrats took to the House floor to present their arguments, accusing each other of obstinacy and playing games with the debt ceiling.
Democratic Representative Jim McGovern of Massachusetts criticized both parties, stating, “Frankly, we should not be here. We should have taken care of this months ago.” He accused Republicans of creating a “totally manufactured crisis that jeopardizes the full faith and credit of the United States.”
Republican Tom Cole of Oklahoma retorted with a similar accusation, blaming the Democrats for the situation. He said, “An agreement like the one we’re considering today could and should have been in place much earlier. Instead, President Biden dithered and refused to negotiate with House Republicans, pushing us right up to the very brink of catastrophic default.” Cole claimed that Biden insisted on a “clean debt-ceiling increase” and refused to consider any alternative options.
According to the US Treasury, the debt ceiling has been lifted or amended 78 times since 1960, with Republicans in power for 49 of those occasions and Democrats for 29. However, in recent decades, the process has become increasingly contentious, leading to gridlock in Congress over how to increase the debt limit and which expenses to cut.
Representative Delia Ramirez, a Democrat from Illinois, likened this year’s debt-ceiling deal to a “hostage situation” and stated that its terms were not something she could support. She expressed her disappointment, saying, “We should be voting for a straightforward extension of the debt ceiling, but instead, Republicans are more than willing to force our nation and economy into default just to score political wins.”
Her Democratic colleague, McGovern, questioned why military spending remained untouched while discretionary spending for social programs was subjected to cuts. He suggested alternative measures to tackle the deficit, such as ensuring that the wealthy and well-connected pay their fair share and closing tax loopholes exploited by millionaires and billionaires.
Representative Chip Roy of the Freedom Caucus, responding to McGovern, argued that US citizens were “fed up” with government spending that burdened future generations. He raised concerns about the impact of rampant inflation resulting from excessive spending, warning of a future where people would struggle to afford groceries.
