Dems Reject Matched Spending Cuts, Setting Up Debt Ceiling Showdown With GOP

It’s that time again: Congress has less than one week to hammer out an agreement to raise the debt limit before the U.S. Treasury Department must take “extraordinary measures.”

The U.S. government should reach the $31.4 trillion debt ceiling by January 19. The nation’s current debt is $31.3 trillion. The debt ceiling was last raised in December 2021.

Members of the conservative House Freedom Caucus stated that spending cuts should correspond to any debt limit increases.

Democrats want a debt limit increase that is clean before the deadline. This will set off a fight between the parties.

“Congress must act on legislation to prevent a disastrous default, meet our obligations and protect the full faith and credit of the United States,” Senate Majority Leader Chuck Schumer and House Democratic Leader Hakeem Jeffries said in a statement on Friday. “A default by extreme MAGA Republicans could force the country into deep recession and increase costs for America’s working family on everything, from mortgages and car loan payments to credit card interest rate.

“Addressing the debt limit is about meeting obligations the government has already made, ensuring vital payments to Social Security recipients are uninterrupted and continuing to support our veterans. The debt limit was increased in a bipartisan way three times when Donald Trump was president, twice when Republicans had majorities in the House and Senate. This time should be no different.”

Schumer and Jeffries want it. “move quickly to pass legislation addressing the debt limit so there is no chance of risking a catastrophic default,” They agreed.

“We’ve seen in previous debt ceiling stand-offs that even the threat of default leads to even higher costs for working families. Republican leaders must do the right thing to protect Social Security, the economy, and our country,” The Democratic leaders stated.

Kevin McCarthy, House Speaker said he was ready to meet President Biden in order to come to an agreement.

“I had a very good conversation with the president when he called me, and I told him I’d like to sit down with him early and work through these challenges,” McCarthy spoke on Thursday.