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House Speaker Kevin McCarthy unveiled the House GOP’s 320-page proposal on Wednesday to raise the federal debt ceiling by $1.5 trillion in exchange for slashing federal spending, an opening bid for debt talks with the White House that have yet to materialize.
The proposal would raise the cap on how much the government could borrow to meet expenses through March 31, 2024. It pairs the increase with spending cuts that Mr. McCarthy said would save taxpayers $4.5 trillion over the next decade.
“Now that we’ve introduced a clear plan for Responsible debt limit increase … President Biden has a choice,” said Mr. McCarthy, California Republican. “Come to the table and stop playing partisan political games, or cover his ears, refuse to negotiate and risk bumbling his way into the first default in our nation’s history.”
Mr. McCarthy introduced the proposal at virtually the same time the president was giving another speech decrying the Republicans for delaying a move on the debt-ceiling. Mr. Biden called the GOP’s proposals “whacko notions.”
The bill cuts federal spending by $130 billion for the upcoming fiscal year and limits future budget growth to 1% annually over the next decade. It rescinds President Biden’s student loan forgiveness program and $90.
