Kevin McCarthy Hopes Late-Night Changes Win Over Holdouts On Debt Ceiling Bill
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- Kevin McCarthyAmerican politician, 55th Speaker of the United States House of Representatives
- Matt GaetzAmerican politician and member of the United States House of Representatives
WASHINGTON ― Despite insisting that they wouldn’t change their debt ceiling bill, House Republican leaders caved to demands from Rep. Matt Gaetz (R-Fla.) and other GOP holdouts after 2 a.m. Wednesday.
It wasn’t immediately clear if the alterations had won over enough naysayers to secure the 218 votes needed to pass the legislation, which aims to increase the federal government’s borrowing limit. House Speaker Kevin McCarthy (R-Calif.) has previously said that the passage would happen this week.
Gaetz had refused to support the bill because the stringent work requirements it proposes for the Supplemental Nutrition Assistance Program, or SNAP ― which provides food aid to qualifying recipients based on factors like income level and employment ― wouldn’t kick in until 2025.
So, leaders amended the text to say 2024 instead. But Gaetz was still not ready to say yes.
“I just haven’t had a chance to review what was done at 2 in the morning,” Gaetz told HuffPost after leaving a party meeting.
McCarthy also edited the bill to preserve green energy tax credits benefiting the agriculture industry, per demands from a bloc of Midwestern lawmakers. Rep. Randy Feenstra (R-Iowa) said he would support the updated legislation.
But Rep. Nancy Mace (R-S.C.) said she remained skeptical, and Tim Burchett (R-Tenn.) told HuffPost that he was no.
Given the House’s slim GOP majority, McCarthy can lose only four Republicans and still pass the bill, since all Democrats will likely oppose it.
The goal of increasing the borrowing limit stems from current fiscal rules. Because the government’s spending exceeds its revenue from taxes, the Treasury Department has to sell debt to continue paying for basic expenses. But the current debt ceiling has already blocked further borrowing, and sometime this summer could cause the government to default on its debts, which economists say would cause a financial crisis and recession.
President Joe Biden has demanded that Congress increase the debt limit, but Republicans have asserted that they’ll do so only if Biden agrees to significant spending cuts. The president has so far refused to negotiate.
Republicans’ proposed bill would reduce federal spending by nearly $5 trillion over a decade, according to a Congressional Budget Office estimate using a previous version of the text. It would also reduce enrollment in SNAP by 275,000 each month and in the health care program Medicaid by 600,000.
The change that Gaetz won would likely increase the number of people who lose SNAP benefits, which help 20 million households with their grocery costs.
Either way, Republican efforts to advance the bill are largely symbolic, since Democrats control the Senate and the White House. But the GOP hopes that its passage in the House would force Biden into a negotiation.
“We’re proud to get this bill passed this week, but it’s long past time that President Biden stop hiding, stop trying to run the clock out,” Rep. Steve Scalise (R-La.), the number-two House Republican, said at a press conference.