U.S. House Votes On Debt Ceiling Plan

The House Rules Committee could start marking up House Republicans’ $4.5 trillion bill starting the afternoon of April 25, 2023, which could send it to the floor as soon as Wednesday, Punchbowl News reported.

Photo Insert: House Speaker Kevin McCarthy (R., Calif.) needs 218 votes to pass the bill to start negotiations with Democratic leaders.

The bill would raise the debt limit into 2024 while slashing tens of billions of dollars in federal spending, Janet H. Cho reported for Barron’s Daily.

The GOP’s Limit, Save, Grow Act would return nonmilitary discretionary spending to fiscal-year 2022 levels, cap spending growth 1% annually for a decade, and raise the debt ceiling until March 31, 2024, or until the national debt increases by $1.5 trillion, whichever comes first.

Senate Majority Leader Chuck Schumer (D., N.Y.) called the Republican bill “a partisan wish list masquerading as legislation,” and gave it no chance of moving forward in the Senate.

House Speaker Kevin McCarthy (R., Calif.) needs 218 votes to pass the bill to start negotiations with Democratic leaders.

The Treasury Department has been maneuvering to pay the government’s obligations after hitting the $31.4 trillion debt limit in January. It is expected to give a new estimate of the “X-date,” signaling the time in the summer when it runs out of options and risks default.

Wrightson ICAP said the debt ceiling timeline “remains murky,” adding that a late-July debt-ceiling crunch remains the most likely outcome, but added there is still a 20% chance the X-date (when extraordinary measures expire) “might sneak up on us” as early as the second week of June.

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