In big win for Speaker McCarthy, US House passes debt ceiling bill

In a big win for Speaker Kevin McCarthy, the US House passed legislation on Wednesday by a narrow 217-215 vote that would raise the government's legal debt ceiling (also known as borrowing limit) by $1.5 trillion in exchange for spending restrictions.

Republicans run the House of Representatives, while Democrats have a majority in the Senate. So, the legislation has little chance of passing in the Senate.Also, Biden has threatened to veto it.

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The federal government borrows money to assist cover budgeted expenses including social security and Medicare pa.yments as well as the wages of US government and military employees.

If passed, the legislation would reduce total government expenditure in return for an increase in the debt ceiling of $1.5 trillion through 2024. A few of the potential federal spending cuts could include, clawing back unspent Covid-19 funds, stricter work requirements for recipients of food stamps and other government assistance, a halt to Biden's plans to forgive up to $20,000 in student loans, and the termination of many significant renewable energy tax breaks.

The White House believes that the debt ceiling must be raised unconditionally.“We’ve done our job,” McCarthy said.“The president can no longer ignore” federal spending restrictions, he said adding, “Now he should sit down and negotiate.”

Meanwhile, Biden said, “Happy to meet with McCarthy, but not on whether or not the debt limit gets extended." “That’s not negotiable.”

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The president and Congress are attempting to reach an agreement that would allow the nation's debt, which is currently $31 trillion, to be lifted in order to allow for additional borrowing and prevent a fiscal crisis.

The passage of the expansive 320-page package in the House is only the beginning of what is anticipated to become a week-long political slog.

The House Republican majority wants torestrict future expenditure rises at 1% over the next ten years, among other reforms.Democrats mocked the Republican proposal, calling it a "shakedown," "ransom note," and "an unserious bill" that would put the country in peril financially.

Although "extraordinary measures" are being taken by the treasury department to pay the bills, funds are anticipated to run out this summer. As per experts, the economy is under serious debt default risk, reported Guardian.

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If the Republican proposal were to become law, it would cut the federal deficit by $4.8 trillion over the next ten years. Chuck Schumer, the leader of the Senate majority, stated that House approval of the plan would be a "wasted effort" and that McCarthy should join Democrats at the negotiating table.

Senate Republican leader Mitch McConnell said both Biden and McCarthy must come reach a consensus else “we’ll be at a standoff. And we shouldn’t do that to the country.”

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