debt ceiling The 314-117 vote was lauded by Joe Biden as a “critical step” in preserving the nation’s post-pandemic economic recovery and the result of “bipartisan compromise.”
As a critical first step to preventing a catastrophic default, US senators approved a deal reached between Washington’s feuding parties on Wednesday. The agreement was reached after weeks of dangerous backroom negotiations.
The agreement, which was reached between Republican House members and Democratic President Joe Biden, suspends the debt ceiling until 2024 while also marginally reducing federal spending in 2019.
debt ceiling deal Kevin McCarthy
Speaking as the leading Republican in Congress, Speaker Kevin McCarthy said, “Passing the Fiscal Responsibility Act is a crucial first step for putting America back on track.”
It follows our beliefs and commitments, is possible under a bicameral system, and is accountable to our children.
The 314-117 vote was praised by Biden as a “critical step” in preserving the nation’s post-pandemic economic recovery and the result of “bipartisan compromise.”
The drama came at the end of a difficult week on Capitol Hill, as the Treasury anticipated running out of cash as early as Monday.
71 conservatives voted against the plan, which the Republican majority in the House had to fend off in order to pass it to the Senate, which is anticipated to do the same by the end of the week.
As senior Democrats swore that their members would put the nation’s finances above the temptation to give the opposition a bloody nose, McCarthy’s lieutenants had spent the final hours aggressively whipping votes.
Chuck Schumer, the president of the Democratic-led Senate, warned before the lower chamber’s vote that failure to meet the deadline would have “global repercussions and would require years to recover from.”
“Remember, a default would almost certainly lead to another recession, drive up costs, and eliminate millions of jobs—hardworking people being fired for no fault of their own.”
leadership difficulty?
According to the impartial Congressional Budget Office, the proposed expenditure caps for 2024 and 2025 would reduce anticipated federal budget deficits by approximately $1.5 trillion over the following ten years. More than $31 trillion worth of debt ceiling is owed.
The vote was the culmination of weeks of intermittent negotiations between the McCarthy and Biden teams, during which Democrats said that Republicans were “hostage-taking” the economy by requiring spending cuts in order to support an increase in the borrowing limit.
Right-leaning fiscal hawks in Congress claim that the White House is pursuing unaffordable spending plans and that raising the cap that covers existing debt ceiling must be contingent upon budget negotiations for the future.
The House Minority Leader, Hakeem Jeffries, had made it clear that his members would give enough votes to assure that the bill was never in danger, so there was none of the high drama present in recent budget and debt ceiling battles.
McCarthy’s position would have been in jeopardy had the majority of his members rejected the deal, but it was ultimately passed anyhow, so it was a high-wire performance for him.
McCarthy may portray strength in his attempt to fend off criticism from the Republican right, who have said that he capitulated to the White House by not seeking tougher cuts, by garnering 149 Republican votes, or approximately two-thirds of his caucus.
Some hardliners have openly discussed calling a snap election to remove McCarthy using a new tool that McCarthy granted them as part of his bid for the speakership in January.
“Cartoon antagonist”
Katherine Clark, the House Democratic Whip, referred to the vote as a “ransom” that the Republicans had demanded of the country by threatening “devastating cuts or we lose eight million jobs overnight.”
It is difficult to comprehend because it resembles a cartoon villain. The American people won’t bounce back, though, if you dump that economic anvil on their heads, she added, unlike in a cartoon.
Party leaders asked their members to work together on a quick rubber stamp vote that they are expecting to hold as early as Thursday evening. The bill will need 60 votes in the Senate’s 100-member body.
Concerns have been raised by defence hawks regarding Biden’s proposed $886 billion cap on defence spending.
Senators Jeff Merkley and Bernie Sanders, a Democrat and an independent who supports the party, issued separate statements at the same time stating that they could not “in good conscience” support a bill that would cut important federal programmes while increasing military spending and requiring no additional tax revenue from billionaires.
Given that the majority of the 51-member Democratic majority is already secured, Republican Senate leader Mitch McConnell, who generally deferred to McCarthy in the negotiations, would be expected to deliver at least a dozen votes.