WASHINGTON — Hard-line conservative Republicans are concerned about a potential deal between House Speaker Kevin McCarthy (R-Calif.) and President Joe Biden that would avoid catastrophic debt.
The settlement would raise the government’s debt ceiling until next year, depriving Republicans of another chance to hold the government hostage before 2024.
“They want to make it past the presidential election,” Rep. Ralph Norman (RS.C.), a member of the far-right House Freedom Caucus, told JS Thursday.
Talking to reporters, Norman and others in his party said they had just learned that negotiators were leaning toward a larger increase in the debt ceiling than Republicans previously supported in exchange for unspecified cuts.
Earlier this month, the House passed the Limit, Save, Grow Act, a Republican bill that would have cut federal spending, imposed so-called work requirements on federal safety net programs and allowed the Treasury Department to continue borrowing until next spring. The bill would increase the debt ceiling by $1.5 trillion or until March 31, 2024, whichever comes first.
“I’m concerned about rumors to that effect – and I haven’t read or seen anything yet – but rumors that we might have some kind of deal that would raise the debt limit beyond what was called for in Limit. Saving, growing for a lot of less in return,” says Rep. Bob Good (R-Va.).
“If that were true, that would absolutely collapse the Republican majority for this debt ceiling increase.”
The Freedom Caucus has always insisted that it would accept nothing less than Limit, Save, Grow — even though an eventual deal to become law would have to be acceptable to the Democrat-controlled Senate and White House.
The Freedom Caucus’ complaints, as well as concerns among progressives, suggest that a more moderate deal is indeed being struck.
There appeared to be negotiations make progress ahead of a looming June 1 deadline to lift the debt ceiling, and House Majority Leader Steve Scalise (R-La.) told reporters that the “problems are getting smaller”.
The federal government could pay off its debt if lawmakers fail to reach an agreement, an outcome that could shake the financial system and push the economy into recession.
Norman and Rep. Chip Roy (R-Texas) said they heard McCarthy’s negotiators were now considering an increase of more than $3 trillion, and it was not clear to them that the Republicans were getting enough job demands or cuts in return.
“It’s crazy for him — for anyone to consider anything [other] than what we have,” Norman said.
Roy said his “antenna is out” due to the lack of “transformative, substantial fiscal reforms needed to raise the $4 trillion debt ceiling.”
Meanwhile, conservatives in the Senate also seemed to fear an imminent deal. Senator Mike Lee (R-Utah) threatened to block the expedited approval of an agreement that did not include “substantial” cuts.
“I will use every procedural tool at my disposal to obstruct a debt ceiling agreement that does not include substantial spending and fiscal reform,” Lee said. tweeted Thursday. ”I’m afraid it’s headed that way. If they do, that proposal will not run smoothly in the Senate.”
Any senator can force a lengthy debate and extra votes on the floor, so Lee’s threat could potentially push the US over the edge and default if the Senate doesn’t act before June 1. Plus, the House still has something to vote on. , and the GOP leadership has pledged to give members 72 hours to review a deal before it’s laid on the floor.
Another sign that an agreement between the two sides is imminent is that liberals are also becoming concerned about leaked negotiation details, including a possible idea to reclaim additional funding for the Internal Revenue Service, as the Republicans had demanded. According to through a report The associated pressIRS funding, which Democrats approved last year to allow the agency to crack down on wealthy tax evaders, would instead be shifted to other domestic programs.
“In case anyone had any doubts about the Republicans’ priorities, at the 11th hour before a catastrophic bankruptcy, they are making a last-ditch effort to help wealthy people cheat their taxes,” tweeted Senator Ron Wyden (D-Ore, ), chairman of the Senate Finance Committee, in response to the AP report.