House Republicans chart new strategy to pressure Biden, Democrats
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April 17, 2023]
By David Morgan
WASHINGTON (Reuters) - U.S. House Republicans will try to agree on a
plan to lift the federal $31.4 trillion debt ceiling and cut government
spending when Congress returns this week, after being stymied for months
by Democratic President Joe Biden's demands they do so without
conditions.
House of Representatives Speaker Kevin McCarthy in a Monday speech at
the New York Stock Exchange will lay out the conditions Republicans want
Democrats to agree to in exchange for movement on the debt ceiling.
He has offered few specific details ahead of the talk, but Republicans
have proposed holding annual spending growth to 1% for a decade,
reducing regulation and boosting energy production.
Members of McCarthy's sometimes-fractious caucus, who hold a narrow
222-213 majority, have yet to agree on actual legislation. Any proposal
Republicans introduce would need to be negotiated with Biden's
Democrats, who control the Senate, before it could become law.
The White House, which is leading the Democrats' approach to the debt
ceiling, has dismissed the Republican proposals as unrealistic.
Nonpartisan forecasters have warned the federal government could face a
historic default this summer if Congress fails to act. A default could
cripple the U.S. and world economies and force a downgrade of the U.S.
credit rating, as occurred in a 2011 standoff over the debt.
But McCarthy's speech, which Republicans say is intended to draw Wall
Street's support for negotiations on spending, could spark movement
after months of inaction. Biden has insisted that Congress pass a
"clean" debt hike without conditions, noting that it did so three times
under his predecessor, Republican Donald Trump.
"At this point, I think there's no choice for Republicans and the
speaker but to bring forward some type of proposal," Representative Tom
Emmer, the No. 3 House Republican, told Reuters.
The prospective legislation, which conservatives hope to pass by the end
of April, could lift the borrowing limit until May 2024, according to a
source familiar with the matter. That would set the stage for another
debt ceiling debate in the closing months of the 2024 presidential
campaign.
But first, Republicans must agree on a proposal that can win the support
of at least 218 of their 222 members.
"Getting us all on the same page is a challenge. But it's not impossible
and I'm optimistic that we'll get there. This is an issue we've been
talking about for some time," said Republican Representative Ben Cline.
Cline, a member of the hardline House Freedom Caucus, sits on both the
House Budget and Appropriations Committees and is helping to craft a
budget plan for the conservative Republican Study Committee, the biggest
caucus in Congress.
RISKS
The White House has dismissed the proposals so far.
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U.S. House Speaker Kevin McCarthy (R-CA)
walks to his offices at the U.S. Capitol in Washington, U.S.
February 27, 2023. REUTERS/Jonathan Ernst/File Photo
"Speaker McCarthy is adopting the extreme MAGA House Republican
position: threatening our economic recovery, hardworking Americans'
retirement, and catastrophic default in order to force devastating
cuts," said White House spokesperson Andrew Bates.
House Republicans maintain that their proposals would win enough
public support to force Biden and the Democrats into negotiations,
just as the party's bill to overturn changes in the Washington,
D.C., criminal code passed Congress last month, despite initial
Democratic opposition.
Biden and McCarthy met at the White House in February to discuss the
standoff, but they have not held further talks as the administration
has called on House Republicans to release a budget proposal.
The White House in March unveiled its own budget proposal that it
said would cut U.S. deficits by $3 trillion over the next 10 years.
But with the House Budget Committee not expected to produce a
spending plan anytime soon, the Republican focus has shifted to the
debt ceiling plan.
Republican Representative Garret Graves, a top McCarthy adviser who
has led debt ceiling talks within the Republican conference, said
legislation could follow the outline set in a March 28 McCarthy
letter to Biden.
"We're continuing to discuss both strategy and putting a little more
meat on the bones or translating the speaker's letter into
legislation," Graves said in an interview.
While McCarthy's letter contained few details, Republicans are
considering proposal that could reset nondefense discretionary
spending to fiscal 2022 levels, hold annual spending at 1% for a
decade, reduce regulation, boost energy production and reset the
debt ceiling to a ratio of debt to gross domestic product.
'FIVE FAMILIES'
The Republican conference is divided by ideological caucuses known
internally as "the five families," a reference to the warring mafia
clans of "The Godfather" movies.
The five families, who are expected to take up the plan early next
week, run the gamut from members of the bipartisan Problem Solvers
Caucus, who have floated the idea of reaching a deal with Democrats
to avoid default, to the hardline conservative House Freedom Caucus,
whose members insist on deep spending cuts and say Biden will be
responsible for any default.
Some Republicans also favor the clean debt ceiling increase that
Biden has demanded.
(Reporting by David Morgan; Additional reporting by Trevor Hunnicutt;
Editing by Scott Malone and Alistair Bell)
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