Debt ceiling talks stuck on classic problem: Republicans demand spending cuts and Democrats resist
Kevin McCarthy. Image via AP.

House Republicans say a spending freeze at current levels is not enough.

Debt ceiling negotiations are locked on a classic problem that has vexed, divided and disrupted Washington before: Republicans led by House Speaker Kevin McCarthy want to roll back federal government spending, while President Joe Biden and other Democrats do not.

Time is short to strike a deal before a deadline as soon as June 1, when the Treasury says the government risks running out of cash to pay its bills. Negotiators are expected to convene Wednesday for another round of talks as frustration mounts. The political standoff is edging the country closer to a crisis, roiling financial markets and threatening the global economy.

“They’ve got to acknowledge that we’re spending too much,” said McCarthy.

Cheered on by a hard-charging conservative House majority that hoisted him to power, McCarthy, a California Republican, was not swayed by a White House counter-offer to freeze spending instead. “A freeze is not going to work,” McCarthy said.

The longstanding Washington debate over the size and scope of the federal government now has just days to be resolved. Failure to raise the nation’s debt ceiling, now at $31 trillion, would risk a potentially chaotic federal default, almost certain to inflict economic turmoil at home and abroad.

From the White House, press secretary Karine Jean-Pierre said it was “ridiculous” to suggest Biden wasn’t acting with urgency after Republicans complained about the pace. “He wants to see this done as soon as possible,” she said.

Dragging into a third week, the negotiations over raising the nation’s debt limit were never supposed to arrive at this point.

The White House insisted early on it was unwilling to barter over the need to pay the nation’s bills, demanding that Congress simply lift the ceiling as it has done many times before with no strings attached.

But the newly elected Speaker visited Biden at the Oval Office in February, urging the President to come to the negotiating table on a budget package that would reduce spending and the nation’s ballooning deficits in exchange for the vote to allow future debt.

“I told the President Feb. 1,” McCarthy recounted. “I said, Mr. President, you’re not going to raise taxes. You’ve got to spend less money than was spent this year.”

Negotiations are focused on finding agreement on a 2024 budget year limit. Republicans have set aside their demand to roll back spending to 2022 levels, but say that next year’s government spending must be less than it is now. But the White House instead offered to freeze spending at current 2023 numbers.

“We are holding firm to the Speaker’s red line,” said a top Republican negotiator, Rep. Garret Graves of Louisiana. “Which is that we will not do a deal unless it spends less money than we’re spending this year.”

By sparing defense and some veterans accounts from reductions, the Republicans would shift the bulk of spending reductions to other federal programs, an approach that breaks a tradition in Congress of budget cap parity.

Graves said there were still “significant gaps” between his side and the White House.

Agreement on that topline spending level is vital. It would enable McCarthy to deliver spending restraints for conservatives while not being so severe that it would chase off the Democratic votes that would be needed in the divided Congress to pass any bill.

But what, if anything, Democrats would get if they agreed to deeper spending cuts than Biden’s team has proposed is uncertain.

Asked what concessions the Republicans were willing to give, McCarthy quipped, “We’re going to raise the debt ceiling.”

The White House has continued to argue that deficits can be reduced by ending tax breaks for wealthier households and some corporations, but McCarthy said he told the President at their February meeting that raising revenue from tax hikes is off the table.

The negotiators are now also debating the duration of a 1% cap on annual spending growth going forward, with Republicans dropping their demand for a 10-year cap to six years, but the White House offering only one year, for 2025.

Typically, the debt ceiling has been lifted for the duration of a budget deal, and in this negotiation the White House is angling for a two-year agreement that would push past the presidential elections.

Past debt ceiling talks have produced budget agreements in which both parties have won some concessions in a give and take. Both have wanted to raise the debt limit to prevent a economy-shattering federal default.

Graves explained the Republican position this time around. Since Biden already boosted federal spending in significant ways with his COVID-19 rescue package, Inflation Reduction Act and other bills, “they’ve already got theirs.”

“We’re willing to give them an increase in debt ceiling. That’s what they’re getting,” he said.

And yet, the Republicans are pushing additional priorities as the negotiators focus on the $100 billion-plus difference between the 2022 and 2023 spending plans as a place to cut.

Republicans want to beef up work requirements for government aid to recipients of food stamps, cash assistance and the Medicaid health care program that the Biden administration says would impact millions of people who depend on assistance.

All sides have been eyeing the potential for the package to include a framework to ease federal regulations and speed energy project developments. They are all but certain to claw back some $30 billion in unspent COVID-19 funds now that the pandemic emergency has officially lifted.

The White House has countered by keeping defense and nondefense spending flat next year, which would save $90 billion in the 2024 budget year and $1 trillion over 10 years.

The House speaker promised lawmakers he will abide by the rule to post any bill for 72 hours before voting, making any action doubtful until the weekend — just days before the potential deadline. The Senate would also have to pass the package before it could go to Biden’s desk to be signed.

McCarthy faces a hard-right flank in his own party that is likely to reject any deal, and that has led some Democrats to encourage Biden to resist any compromise with the Republicans and simply invoke the 14th Amendment to raise the debt ceiling on his own, an unprecedented and legally fraught action the president has resisted for now.


Republished with permission of The Associated Press.

Associated Press


  • Dont Say FLA

    May 24, 2023 at 7:28 am

    The debt ceiling negotiation is stuck on McCarthy trying to keep his seat as House Speaker, specifically keeping it out of the hands of Marjorie Taylor Green. Little Miss Kooky Konstruction Heiress from the suburbs of Atlanta that moved to NW Georgia to find enough rubes to vote for her, if she gets Speaker of the House, this country is spiraling irretrievably into its demise, especially if Trump gets back into the Oval Office. Just look how badly things are going for the GOP dog after they caught the abortion car. They are wandering, aimless. If they lost their white replacement nonsense too by placing MTG and Trump alongside their SCOTUS, that would mean the end of GOP and, I’m betting, the end of USA come the next election when they’re voted out for their nonsense but they won’t leave just like Trump tried not to leave last time. This is not paranoia. He already did it once. He showed his tiny hand. He’ll try that same hand, to the total demise of GOP and/or USA. Best thing for the GOP is for MTG and DJT to USEXIT.

  • Andrew Linko

    May 24, 2023 at 7:45 am

    The Trump tax cuts caused a quarter of the debt, yet, the GOP wants to reduce Veterans benefits, VA health, Social Security, and Medicare, so Tom Brady can get more tax cuts to buy another football team. That’s patriotism and anti-wokeism!

    • Dont Say FLA

      May 24, 2023 at 11:22 am

      Won’t be long till some GOP figures out to try a line about how “Veterans are people who LEFT the military. They were in the military service, but they QUIT, so scr3w them quitters. We prefer service people who remain in the military.”

  • Mercury Eduardo 👍

    May 24, 2023 at 9:20 am

    If the GOP cared about the debt, they would be pushing for less spending AND higher taxes. Otherwise, it’s just about shoveling money to the rich.

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    May 25, 2023 at 8:00 am

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  • Andrew Finn

    May 26, 2023 at 5:13 pm

    The people in Congress (both sides of the aisle) need to get off their butts and reach some sort of agreement to raise the debt ceiling. If they cause any problems for seniors getting their rightful payments (not entitlements – earned payments) they just might find that the reaction will make the “January 6th Nonsense” look like a birthday party. Don’t mess with, or underestimate, old people. The people in Washington forget that the older people get – the less “life in prison” is a concern !!!!!!!!!!!!!!!!!!!

Comments are closed.


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