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House Freedom Caucus proposes conditional debt ceiling increase
(MENAFN) The House Freedom Caucus, a group of over 40 conservative Republicans, has announced that they will agree to raise the debt ceiling for the first time in their careers if several of President Biden's legislative accomplishments are rolled back and strict limits on government spending are implemented. This proposal comes ahead of the upcoming fight over raising the nation's debt ceiling.
Pennsylvania Republican Rep. Scott Perry, the group's chairman, announced in a press conference that "the plan is to shrink Washington and grow America." The group wants to hold spending levels at 2022 fiscal-year levels for 10 more years, which they claim would save USD3 billion in the long term.
In the near term, the caucus members want to pull back money already appropriated by the Democratic-led Congress during the first two years of President Biden's term. This includes blocking his $400 billion student loan forgiveness plan, pulling back unspent COVID-19 funds, recouping $80 billion for the IRS, and cancelling billions of dollars allocated for climate change projects.
The group also proposes policies to help domestic growth, such as limiting the administration's ability to write new regulations and ending rules related to domestic energy production. They also want to see the implementation of 1990s-era work requirements on welfare programs that passed under President Bill Clinton.
The Freedom Caucus proposal comes a day after President Biden unveiled his $6.9 trillion budget, which aims to reduce the deficit by nearly $3 trillion over the next decade by raising taxes on the wealthy and corporations. House Republicans have not yet released their budget, but House Speaker Kevin McCarthy has rejected the notion of a "clean" debt ceiling increase with no spending cuts.
Treasury Secretary Janet Yellen has warned that "a default on our debt would trigger an economic and financial catastrophe" and has urged all members of Congress to address the debt limit without conditions and without waiting until the last minute. However, the Freedom Caucus members expressed confidence that McCarthy would not cut a deal with Democrats to raise the debt ceiling.
In response to the Freedom Caucus proposal, White House press secretary Karine Jean-Pierre called it "a gut-punch to the American middle class" that wouldn't reduce the deficit. She also claimed that it would cut Medicare, defund police, weaken U.S. efforts to compete with China, and cut border security funding to provide tax breaks to corporations and the wealthiest Americans.
Perry insisted that under their plan, "the benefits under Social Security and Medicare are not going to be cut." The Republican majority in the House is a slim one, just 9 votes, and without the Freedom Caucus' support, McCarthy risks a rebellion from his right flank. The House Freedom Caucus proposal sets the stage for a contentious debate over the nation's debt ceiling in the coming weeks.
Pennsylvania Republican Rep. Scott Perry, the group's chairman, announced in a press conference that "the plan is to shrink Washington and grow America." The group wants to hold spending levels at 2022 fiscal-year levels for 10 more years, which they claim would save USD3 billion in the long term.
In the near term, the caucus members want to pull back money already appropriated by the Democratic-led Congress during the first two years of President Biden's term. This includes blocking his $400 billion student loan forgiveness plan, pulling back unspent COVID-19 funds, recouping $80 billion for the IRS, and cancelling billions of dollars allocated for climate change projects.
The group also proposes policies to help domestic growth, such as limiting the administration's ability to write new regulations and ending rules related to domestic energy production. They also want to see the implementation of 1990s-era work requirements on welfare programs that passed under President Bill Clinton.
The Freedom Caucus proposal comes a day after President Biden unveiled his $6.9 trillion budget, which aims to reduce the deficit by nearly $3 trillion over the next decade by raising taxes on the wealthy and corporations. House Republicans have not yet released their budget, but House Speaker Kevin McCarthy has rejected the notion of a "clean" debt ceiling increase with no spending cuts.
Treasury Secretary Janet Yellen has warned that "a default on our debt would trigger an economic and financial catastrophe" and has urged all members of Congress to address the debt limit without conditions and without waiting until the last minute. However, the Freedom Caucus members expressed confidence that McCarthy would not cut a deal with Democrats to raise the debt ceiling.
In response to the Freedom Caucus proposal, White House press secretary Karine Jean-Pierre called it "a gut-punch to the American middle class" that wouldn't reduce the deficit. She also claimed that it would cut Medicare, defund police, weaken U.S. efforts to compete with China, and cut border security funding to provide tax breaks to corporations and the wealthiest Americans.
Perry insisted that under their plan, "the benefits under Social Security and Medicare are not going to be cut." The Republican majority in the House is a slim one, just 9 votes, and without the Freedom Caucus' support, McCarthy risks a rebellion from his right flank. The House Freedom Caucus proposal sets the stage for a contentious debate over the nation's debt ceiling in the coming weeks.
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