As Democratic and Republican negotiators finalize a deal to suspend the federal government’s $31.4 trillion debt ceiling in the coming days, McCarthy could find himself facing behind-the-scenes challenges.
Rep. Chip Roy, a prominent member of the House Freedom Caucus, said on Twitter that “we will try” to keep this deal from going through the House. Republicans in the House of Representatives and the Senate have criticized the timing of the agreement and the provisions that flow from it.
A failure by Congress to settle the self-imposed debt ceiling by June 5 could lead to a default that would rattle financial markets and plunge the United States into a deep recession.
Republicans control the House of Representatives with 222 seats to Democrats’ 213, while Democrats control the Senate with 51 seats to Republicans’ 49. Those margins mean that moderates on both sides will have to support the bill, as any compromise would almost certainly lose support from the far left and right wings of each party.
Roy complained on Twitter Sunday that the deal would continue to expand the Internal Revenue Service through tax collection, which was passed when Democrats controlled both houses of Congress.
Senator Lindsey Graham also expressed concern about the deal’s potential impact on the US defense sector and Washington’s support for Ukraine.
“We don’t want to default, but we won’t support a deal that reduces the size of the navy and prevents continued technology and military assistance to Ukraine,” Graham wrote on Twitter.
The deal suspends the debt ceiling until January 2025, after presidential elections in November 2024, in exchange for spending caps and cuts to government programs.
Rep. Dan Bishop and other hawkish Republicans have sharply criticized details of the original deal that suggest Biden managed to delay several cost-cutting demands on Saturday, meaning McCarthy will likely struggle to win votes.
Progressive Democrats in both houses have said they will not support any deal that includes additional labor requirements. Sources say this deal adds work requirements to food aid for people between the ages of 50 and 54.
According to sources familiar with the talks, the deal would increase spending on military and veterans care while capping several other national programs.
Republicans are rejecting Biden’s proposed tax increases, and neither side has shown a willingness to deal with rapidly growing health care and retirement programs that will lead to a steep increase in debt in the years to come.
Several credit rating agencies have put the United States on watch for a possible downgrade, which would increase borrowing costs and undermine its position as the backbone of the global financial system.
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