US Republicans Pass ‘Limit, Save, Grow Act’ to Avert Debt Crisis
Last Updated: April 27, 2023, 04:20 IST
On Monday, the White House accused McCarthy of taking the economy hostage by attaching conditions to any extension of the country’s borrowing limit. (Image: Reuters)
The Limit, Save, Grow Act unravels major portions of Biden’s agenda and raises the debt ceiling through March 2024 or until the total grows to $32.9 trillion
Seeking to avert a potential credit default, Republicans in the US House of Representatives passed a bill Wednesday that would raise the national borrowing limit amid looming opposition in the Senate.
The “Limit, Save, Grow Act” unravels major portions of US President Joe Biden’s agenda and raises the debt ceiling through March 2024 or until the total grows to $32.9 trillion.
However, the bill, which cleared the chamber 217-215, will not become law as it is opposed by the Democratic-led Senate, The Hill newspaper reported.
???? BREAKING ???? House Republicans just passed the only plan in Washington that1. Lifts the debt ceiling2. Stops wasteful spending and inflation3. Puts America back on trackNow Democrats should do their job.
Tune in for my press conference soon https://t.co/vmn31INPH5
— Kevin McCarthy (@SpeakerMcCarthy) April 26, 2023
After the passage of the bill, US House Speaker Kevin McCarthy attacked Biden, saying that US President continued to ignore the nation’s debt crisis.
“President Biden—continuing to ignore our nation’s debt crisis is not an option. It is well past time for you to come to the table to negotiate,” he told reporters.
President Biden—continuing to ignore our nation’s debt crisis is not an option. It is well past time for you to come to the table to negotiate. https://t.co/xBoRMdKYqM— Kevin McCarthy (@SpeakerMcCarthy) April 26, 2023
US media reports said Republican lawmakers in the US House of Representatives made a few last-minute changes to a bill, that would raise the national borrowing limit.
This was done to secure support from several GOP members who had previously opposed the bill. Rep. Kevin Hern, chair of the Republican Study Committee, acknowledged that it takes a lot of effort to manage the concerns and expectations of members with a slimmer majority.
However, the bill is unlikely to become law as it faces strong opposition from the Democratic-led Senate, The Hill reported. Majority Leader Chuck Schumer said that the bill, which he described as an “extremist hard-right agenda”, has no chance of moving forward in the Senate.
According to the US newspaper, the proposed bill aims to raise the national borrowing limit by $1.5 trillion or until the end of March 2022.
In return, the Republican Party has suggested a series of measures to reduce government spending, which have been projected to save up to $4.8 trillion.
The bill also proposes a cap on federal funding that is part of the yearly appropriations process, set at the fiscal year 2022 levels. Moreover, the spending growth will be limited to one percent per annum for the next ten years.
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