House Republicans Pass Bill to Raise Debt Ceiling

Facts

• In an effort to spark negotiations with Pres. Biden before the US defaults on its debt, the House Republicans passed a bill by a vote of 217-215 — with all Democrats and four Republicans voting against — to raise the national debt ceiling in exchange for deep cuts in government spending.¹
• The bill would increase Washington's borrowing authority by $1.5T or until March 31 — whichever comes first — pare spending to 2022 levels and then cap growth at 1% a year, repeal some tax incentives for renewable energy, and stiffen work requirements for some anti poverty programs.²
• The nonpartisan Congressional Budget Office said the proposal would cut government deficits by $4.8T over 10 years.¹
• While Republican House Speaker Kevin McCarthy (R-Calif.) told Democrats and Biden specifically that "it's up to you now," White House Press. Sec. Karine Jean Pierre described the bill as cutting "health care, education, Meals on Wheels, and public safety."³
• As the bill heads to the Democrat-controlled Senate, Senate Majority Leader Chuck Schumer said the legislation is "dead on arrival." No one knows exactly when Congress will run out of time to expand the debt limit, though it could come as early as June or later into the months ahead.²
• Since January, the Treasury Dept. has been using "extraordinary measures" to pay its bills as the government reached its $31.4T borrowing limit. Officials estimate they could run out of options by early June.⁴

Sources: ¹Wall Street Journal, ²Reuters, ³ABC News, and ⁴USA Today.

Narratives

• Democratic narrative, as provided by AlterNet. Republicans are playing a dangerous game of roulette with the economy, and Americans are going to feel pain if they don’t relent. Speaker McCarthy is pushing an extreme wish list that increases costs for hard-working families without actually reducing the deficit. Spending cuts for the future won’t do anything to affect what the US has already spent, and claims to the contrary promote a delusion that will ultimately lead to a default.
• Republican narrative, as provided by Townhall. While Republicans are sympathetic to Americans’ financial struggles, Biden continues to hide from the issue and refuses to negotiate. It’s time for the president to lead by coming to the table with McCarthy and for Democrats to acknowledge their reckless spending got the US into this economic mess. Tying the debt ceiling to spending levels is the only way to make the country fiscally responsible.
• Cynical narrative, as provided by ABC News. This government paralysis is just one of the many symptoms of a nation plagued by partisan games, with leaders more concerned with tearing each other down than building the country up. As both sides refuse to compromise, the US is creeping closer to the edge of a default-catalyzed economic crisis. Something must be done to end this deadlock.

Predictions