House Speaker McCarthy Proposes Plan to Raise Debt Ceiling in Exchange for Spending Cuts and Policy Changes

House Speaker Kevin McCarthy has proposed a plan to raise the debt ceiling in exchange for spending cuts and policy changes. On Monday, McCarthy spoke at the New York Stock Exchange to outline the plan, which would lift the debt ceiling for a year and return federal government spending to fiscal year 2022 levels.

McCarthy assured traders that he would never let the US government default on its obligations, as a potential disaster could halt Social Security payments, trigger a recession and cause job cuts by the fall if the debt ceiling is not raised. He also warned that the House GOP majority will refuse to lift the cap on government borrowing unless President Biden agrees to spending cuts that would effectively neutralize his domestic agenda and neuter his White House legacy.

House Republicans emerged from the briefing seeking more details, but they were optimistic about the prospect of writing a bill that could win the support of at least 218 members of their party. They are hopeful that the plan will be able to garner enough support to pass, though it is unclear what the exact details of the plan are.

It remains to be seen whether the House GOP plan will be able to pass, and if President Biden will agree to the proposed spending cuts. In the meantime, House Republicans are optimistic that they can come to an agreement that will be able to pass and avert a potential disaster.