It Looks Like House Republicans Are Preparing to Cave on the Debt Limit

For months now, the Democrats have been attacking the Republicans, accusing them of attempting the U.S. to default on its financial obligations. Meanwhile, the GOP has insisted they aren’t going to cave on the debt limit but also says they are looking for cuts to address Washington D.C.’s exorbitant spending. That has become the rallying cry that has gotten conservatives behind House Speaker Kevin McCarthy.

But, behind the scenes, there appears to be very little progress on actually finding a path forward on this. McCarthy hasn’t spoken with or negotiated with President Joe Biden in months, and the plan GOP leadership is coming up with amounts to little more than “Throw all the red meat at the wall and see what sticks.”

Punchbowl News has more on this in its morning newsletter, breaking down what appears to be the GOP plan.

The legislation would lift the debt limit until May 2024. Leadership is considering either a cap on non-defense discretionary spending or a cap on overall discretionary spending after reducing it to FY 2022 levels. One cap being considered is $584 billion for non-defense discretionary spending — excluding Veterans Affairs programs.

They’re aiming to limit budget growth to 1% annually for the next 10 years. The House GOP proposal would rescind unspent Covid money, prohibit student loan forgiveness, repeal some green tax credits, institute work requirements for social programs and implement the House Republican energy plan (H.R. 1) and regulation-cutting REINS Act.

Rep. Garret Graves (R-La.) is taking the lead on helping craft the proposal, which would require action by several committees. Graves was deputized by Speaker Kevin McCarthy.

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