The deal looks like it should go through within a week
Top US Republican McCarthy urges support for debt ceiling deal ahead of key vote (msn.com)Top US Republican McCarthy urges support fordebt ceiling deal ahead of key vote
Story by By Moira Warburton and DavidMorgan • 34m ago
By Moira Warburton and David Morgan
WASHINGTON (Reuters) - Top congressional Republican Kevin McCarthy onTuesday urged members of his party to support a bipartisan deal to lift the$31.4 trillion U.S. debt ceiling, and a key party hardliner said he would mostlikely support the measure in a critical procedural vote.
The gatekeeper House of Representatives Rules Committee was due todecide on Tuesday whether to advance the 99-page bill to a vote by the fullRepublican-controlled House of Representatives. If the House passes it, itwould then proceed to the Democratic-controlled Senate.
Both Democratic President Joe Biden and House Speaker McCarthy havepredicted they will get enough votes to pass it into law before June 5, whenthe U.S. Treasury Department says it will not have enough money to cover itsobligations.
The non-partisan budget scorekeeper for Congress on Tuesday said thelegislation would reduce spending from its current projections by $1.5 trillionover 10 years beginning in 2024.
The Congressional Budget Office also said the measure, if enacted intolaw, would reduce interest on the public debt by $188 billion.
McCarthy called the bill the "most conservative deal we've everhad."
Not all of his caucus agrees, and he faced a direct challenge on Tuesdayfrom two of three hardline Republicans whom he added to the 13-member RulesCommittee in January as a condition of winning the speaker's gavel.
But the third, Representative Thomas Massie, said he probably wouldapprove the measure, which would allow it to clear the committee with aRepublican majority.
"I anticipate voting for the rule," Massie said, referring tothe measure that the committee must approve to clear the way for a vote by thefull House.
Hardline Republican Representatives Chip Roy and Ralph Norman had saidthey may vote against it if it is not changed to their liking.
Roy said Republicans on the panel had agreed that they would not advancelegislation they all did not support, which could potentially torpedo the billbefore it comes up for a full vote.
"Right now, it ain't good," Roy said at a news conference.
The four Democrats on the panel typically vote against Republican-backedlegislation, but it is not clear whether they would oppose a deal that had beencrafted by Biden.
WEDNESDAY HOUSE VOTE?
A successful vote there would set up a vote by the full House on Wednesday.
White House Budget Director Shalanda Young, who was one of Biden's leadnegotiators, urged Congress to pass the bill.
"I want to be clear: This agreement represents a compromise, whichmeans no one gets everything that they want and hard choices had to bemade," Young told a news conference.
A Senate vote could possibly stretch into the weekend if lawmakers inthat chamber try to slow its passage. At least one senator, Republican MikeLee, has said he may try to do so, and other Republicans have also expresseddiscomfort with some aspects of the deal.
The bill would suspend the U.S. debt limit through Jan. 1, 2025, allowingBiden and lawmakers to set aside the politically risky issue until after theNovember 2024 presidential election.
It would also cap some government spending over the next two years,speed up the permitting process for some energy projects, claw back unusedCOVID-19 funds, and introduce work requirements for food aid programs for somepoor Americans.
In another win for Republicans, it would shift some funding away fromthe Internal Revenue Service, although the White House says that should notundercut tax enforcement.
Biden can point to gains as well. The deal leaves his signatureinfrastructure and green-energy laws largely intact, and the spending cuts andwork requirements are far less than Republicans had sought.
Republicans have argued that steep spending cuts are necessary to curbthe growth of the national debt, which at $31.4 trillion is roughly equal tothe annual output of the economy.
Interest payments on that debt are projected to eat up a growing shareof the budget as an aging population pushes up health and retirement costs,according to government forecasts. The deal would not do anything to rein inthose fast-growing programs.
Most of the savings would come by capping spending on domestic programslike housing, education, scientific research and other forms of"discretionary" spending. Military spending would be allowed toincrease over the next two years.
The debt-ceiling standoff prompted ratings agencies to warn that theymight downgrade U.S. debt, which underpins the global financial system.
Markets have reacted positively to the agreement so far.
(20min delay)