(USNewsMag.com) – As the debt limit debate gets ready to heat up before a summer deadline, House Speaker and California Rep. Kevin McCarthy unveiled the Republicans plan to raise the debt limit as well as cut government spending. He also called on President Joe Biden to begin talks.
The Limit, Save, Grow Act, unveiled April 19, involves raising the debt limit through March 2024 or by $1.5 trillion, whichever comes first. The bill includes a savings of $4.5 trillion through cuts to discretionary spending back to the level of fiscal year 2022, as well as putting a limit of 1% on future spending. The plan involves rescinding the new IRS funding, reclaiming COVID-19 funds that are unspent, enacting work requirements for those receiving federal aid programs and canceling President Joe Biden’s student loan forgiveness program.
According to McCarthy, the bill will be led by House Budget Committee Chair and Texas Rep. Jodey Arrington.
Biden has stated he wants no spending cuts attached to passing an increase in the debt limit. He also refused to negotiate until McCarthy unveiled the Republicans proposal.
The proposed debt limit bill is expected to be moved to the House floor in the last week of April. McCarthy is hoping that passing the bill in the House will help with negotiations though it is unclear if McCarthy has the votes in the House to pass the bill. The bill could either go straight to the floor of the House or go to a committee process, though it is not clear yet where it will go, according to Georgia Rep. Barry Loudermilk.
The current $31.4 trillion debt limit was reached in February. According to Treasury Secretary Janet Yellen, “extraordinary measures” have been put in place since February in order to avoid a default. The measures are only expected to be effective until sometime in June, with the Treasury Department having a deadline of June 5.
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