McCarthy faces new task: persuade Congress on debt ceiling agreement.

House Speaker Kevin McCarthy Faces Challenge in Pushing Through U.S. Borrowing Limit Deal

By Moira Warburton, Katharine Jackson and Gram Slattery

“If Speaker’s negotiators bring back in substance a clean debt limit increase … one so large that it even protects Biden from the issue in the presidential …, it’s war,” Representative Dan Bishop, a Freedom Caucus member, tweeted. 

After tough negotiations with the White House, House Speaker Kevin McCarthy faces the challenge of pushing through a tentative deal on the U.S. borrowing limit in the House. The deal suspends the debt ceiling until January 2025, in exchange for caps on spending and cuts in government programs. However, the deal may be opposed by both hardline Republicans and progressive Democrats, making it necessary for moderates from both sides to support the bill.

A failure by Congress to deal with its self-imposed debt ceiling before June 5 could trigger a default that would shake financial markets and send the United States into a deep recession. Several credit-rating agencies have said they have put the United States on review for a possible downgrade, which would push up borrowing costs and undercut its standing as the backbone of the global financial system.

Behind-the-Scenes Wrangling

As Democratic and Republican negotiators iron out the final details of the agreement, McCarthy may have to do some behind-the-scenes wrangling. To win the speaker’s gavel, McCarthy agreed to enable any single member to call for a vote to unseat him, which could lead to his ouster if he seeks to work with Democrats.

Hours before the deal was announced, some hardline Republicans balked at McCarthy cooperating with the White House. Bishop and other hardline Republicans were sharply critical of early deal details that suggest Biden has pushed back successfully on several cost-cutting demands on Saturday, signaling McCarthy may have an issue getting votes.

Additional Work Requirements

Progressive Democrats in both chambers have said they would not support any deal that has additional work requirements. This deal does, sources say, adding work requirements to food aid for people aged 50 to 54. The deal would boost spending on the military and veterans’ care, and cap it for many discretionary domestic programs, according to sources familiar with the talks. But Republicans and Democrats will need to battle over which ones in the months to come, as the deal doesn’t specify them.

Conclusion

The debt ceiling debate has really come down to one thing, spending. House Speaker McCarthy says they’re close but no deal yet. The next few days will be crucial in determining whether the deal will be pushed through the House or not.