As the debt ceiling's summer deadline approaches, Republicans and Democrats are struggling to choose the best direction with Congressman Pete Sessions (R-TX) backing the Limit, Save, Grow Act as the solution, but others seeing the bill as a threat to essential programs.
"Irresponsible spending over the last two years has placed our economy in a precarious position – and President Biden and Congressional Democrats are avoiding negotiations to address the debt and deficits," Sessions said Wednesday in a Twitter post. "@HouseGOP will pass the Limit, Save, Grow Act as a responsible solution. This bill will limit future spending, reduce the regulatory state and restore domestic energy production. We will maintain national security and protect Medicare and Social Security. As adults, we will govern with the financial security of future generations in mind."
The Limit, Save, Grow Act would limit discretionary spending, setting total discretionary spending for fiscal year 2024 at the same level as FY 2022, and it would implement an annual growth cap of 1% for the next decade, according to the Committee for a Responsible Federal Budget. Other provisions in the bill would prevent President Biden's student debt cancellation plan from being implemented and repeal some of the tax credit expansions related to energy and the climate that were included in the Inflation Reduction Act.
The National Education Association (NEA) urged lawmakers to vote no on the Limit, Save, Grow Act in a letter dated Tuesday, saying the bill would harm educators and students because of budget cuts. "Many current members of Congress voted to raise or suspend the debt ceiling three times with no drama during the previous administration. This time should be no different," the NEA wrote.
Analysts predict that the plan will pass the House but flop in the Senate, but Speaker Kevin McCarthy (R-CA) hopes the plan will at least renew negotiations, USA Today reported. Biden has said he will not negotiate on the debt limit, and he will veto the plan if it gets to his desk. House Republicans say Biden's stance is making the possibility of a default greater. Biden has said the proposed plan would hurt Americans by cutting programs like Medicaid and food assistance.
The plan passed the House on Wednesday, with Ways and Means Chairman Jason Smith (R-MO) saying the bill puts forward "pro-worker, pro-small business policies like work requirements in our welfare programs that will not only support a more vibrant economy but also help more Americans realize the dignity of work," according to a release from the Committee on Ways and Means.
McCarthy said he hopes President Biden will now come to the table to negotiate, Axios reported. McCarthy told reporters after the vote, "The president says, 'I'm not going to talk to him until he offers a plan.' Not only did we offer a plan, we passed it." Some Democrat lawmakers are less optimistic, with Rep. Hillary Scholten (D-MI) saying that Republicans "are wasting everyone's time here by passing a bill that is dead on arrival in the Senate."
Since 1960, there have been 78 instances in which Congress has raised or temporarily extended the debt limit, according to the U.S. Department of the Treasury.
