WASHINGTON — The clock is ticking for Congress to address the looming debt ceiling to avoid a default, which economists warn would lead to an economic disaster.
The House could vote as soon as tomorrow on a GOP-backed proposal to raise the debt ceiling and implement spending cuts.
The White House has said President Joe Biden will not sign a debt ceiling proposal attached to spending cuts.
House Speaker Kevin McCarthy (R-CA) is pushing the measure dubbed the Limit, Save, Grow Act of 2023, which includes spending cuts despite opposition from Democrats and the White House.
The bill would repeal some green energy tax credits and rescind unused COVID-19 relief funds.
It would also prevent student debt cancelation and expand work requirements for Medicaid, the Supplemental Nutrition Assistance Program (SNAP), and Temporary Cash Assistance for Needy Families (TANF).
“We’re going to save taxpayers money,” said McCarthy. “House Republicans are taking action to lift the debt limit. To limit government spending.”
On Tuesday, Democrats on the House floor slammed McCarthy’s proposal, arguing it will take away food assistance for people in need.
“The only way the Speaker’s bill saves money, which he does say, is if people have their benefits stripped away. If seniors go hungry,” said Rep. Jasmine Crockett (D-TX).
White House Press Secretary Karine Jean-Pierre released a statement saying McCarthy’s bill would “cut the American economy off at the knees.”
The White House accused McCarthy of “hostage taking” during the negotiations.
“The way to have a real negotiation on the budget is for House Republicans to take threats of default when it comes to the economy and what it could potentially do to the economy off the table,” said Jean-Pierre.
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