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McCarthy faces GOP backlash in debt deal

Top congressional Republican Kevin McCarthy on Tuesday urged members of his party to support a bipartisan deal to lift the $31.4 trillion U.S. debt ceiling, ahead of a critical procedural vote. The gatekeeper House of Representatives Rules Committee is due to consider the 99-page bill beginning at 3 p.m. EDT (1900 GMT) on Tuesday, ahead of votes in the Republican-controlled House of Representatives and the Democratic-controlled Senate. The Associated Press has the story:

McCarthy faces GOP backlash in debt deal

Newslooks- WASHINGTON (AP)

Under fire from conservatives, House Speaker Kevin McCarthy worked strenuously Tuesday to sell fellow Republicans on the debt ceiling and budget deal he negotiated with President Joe Biden and win approval in time to avert a potentially disastrous U.S. default.

Leaders of the hard-right House Freedom Caucus lambasted the compromise as falling well short of the spending cuts they demand, and they vowed to try to halt passage by Congress. A much larger conservative faction, the Republican Study Committee, declined to take a position, leaving McCarthy hunting votes.

With tough days ahead, the speaker urged skeptical GOP colleagues to “look at where the victories are.” Unhelpfully for Biden, he said of the Democrats on ”Fox and Friends,” “There’s nothing in the bill for them.”

President Joe Biden speaks at the Memorial Amphitheater of Arlington National Cemetery in Arlington, Va., on Memorial Day, Monday, May 29, 2023. (AP Photo/Susan Walsh)

A key test was coming late Tuesday when the House Rules Committee was to consider the 99-page bill and vote on sending it to the full House for a vote expected Wednesday evening.

Quick approval by both the House and Senate would ensure government checks will continue to go out to Social Security recipients, veterans and others, and prevent financial upheaval worldwide by allowing Treasury to keep paying U.S. debts. The deal would restrict spending over the next two years, but it includes environmental policy changes and expanded work requirements for some older food aid recipients that Democrats strongly oppose.

The Republican speaker said he would be talking with lawmakers as they return to Washington from the long Memorial Day weekend ahead of crucial votes.

“This is just the first step,” McCarthy said of his agreement with Biden.

With few lawmakers expected to be fully satisfied, Biden, a Democrat, and McCarthy, a Republican, are counting on pulling majority support from the political center, a rarity in divided Washington, to prevent a federal default.

McCarthy could expect no help from the right.

Speaker of the House Kevin McCarthy, R-Calif., walks to leave Capitol Hill, Monday, May 29, 2023, in Washington. After weeks of negotiations, President Joe Biden and House Speaker Kevin McCarthy have struck an agreement to avert a potentially devastating government default. The stakes are high for both men — and now each will have to persuade lawmakers in their parties to vote for it. (AP Photo/Jose Luis Magana)

“This deal fails, fails completely, and that’s why these members and others will be absolutely opposed to the deal,” Rep. Scott Perry, R-Pa., the chairman of the Freedom Caucus, said, flanked by others outside the Capitol. “We will do everything in our power to stop it.”

Ominously, the conservatives warned of potentially trying to oust McCarthy over the compromise.

“There’s going to be a reckoning,” said Rep. Chip Roy of Texas.

Liberal Democrats decried the new work requirements for older Americans, those 50-54, in the food aid program. And some Democratic lawmakers were leading an effort against a surprise provision to greenlight a controversial Mountain Valley Pipeline natural gas project through Appalachia.

Biden spent part of the Memorial Day holiday working the phones, calling lawmakers in both parties.

“I feel very good about it,” Biden told reporters Monday. “I’ve spoken to a number of the members,” he said, among them Senate Republican leader Mitch McConnell, a past partner in big bipartisan deals who largely has been sitting this one out.

To progressive Democrats raising concerns about the package, the president had a simple message: “Talk to me.”

FILE – Speaker of the House Kevin McCarthy, R-Calif., talks to reporters outside his office following his discussions at the White House with President Joe Biden on the impasse over the government’s debt ceiling, at the Capitol in Washington, Monday evening, May 22, 2023. President Joe Biden and McCarthy came to an “agreement in principle” on the debt limit Saturday, May 27 that would avert a potentially disastrous U.S. default, but still has to pass both houses of Congress. (AP Photo/J. Scott Applewhite, File)

Wall Street was taking a wait-and-see approach. Stock prices were mixed in late trading. U.S. markets had been closed when the deal was struck over the weekend.

Overall, the package is a tradeoff that would impose some federal spending reductions for the next two years along with a suspension of the debt limit into January 2025, pushing the volatile political issue past the next presidential election. Raising the debt limit, now $31.4 trillion, would allow Treasury to continue borrowing to pay the nation’s already incurred bills.

All told, the package would hold spending essentially flat for the coming year, while allowing increases for military and veterans accounts. It would cap growth at 1% for 2025.

Policy issues were raising the most objections.

Liberals fought hard but were unable to stop new work requirements for government food assistance. The Republicans demanded the bolstered work requirements, but some said the changes to the food stamp program were not enough. They were also pushing to increase work requirements for health care and other aid; Biden refused to go along on those.

Questions were also being raised about the unexpected provision that essentially would give congressional approval to the Mountain Valley Pipeline, a natural gas project important to Sen. Joe Manchin, D-W.Va., that many Democrats and others oppose as unhelpful in fighting climate change.

The top Democrat on the House Natural Resources Committee, Rep. Raul Grijalva of Arizona, said including the pipeline provision was “disturbing and profoundly disappointing.”

But Manchin on Tuesday touted the pipeline project as something “we know we need.”

FILE – President Joe Biden meets with House Speaker Kevin McCarthy of Calif., to discuss the debt limit in the Oval Office of the White House, May 22, 2023, in Washington. The White House and congressional leaders are working to ensure passage in time to lift the nation’s borrowing limit and prevent a U.S. default. The full House is expected to vote Wednesday. Officials say the U.S. risks default June 5. (AP Photo/Alex Brandon, File)

The House aims to vote Wednesday and send the bill to the Senate, where Democratic Majority Leader Chuck Schumer and McConnell are working for passage by week’s end.

Senators, who have remained largely on the sidelines during much of the negotiations between the president and the House speaker, began inserting themselves more forcefully into the debate.

Some senators are insisting on amendments to reshape the package from both the left and right flanks. That could require time-consuming debates that delay final approval of the deal.

For one, Democratic Sen. Tim Kaine of Virginia planned to file an amendment to remove the pipeline provision.

But making any changes to the package at this stage seemed unlikely with so little time to spare. Congress and the White House are racing to meet the Monday deadline now less than a week away. That’s when Treasury Secretary Janet Yellen has said the U.S. would run short of cash and face an unprecedented debt default without action.

A default would almost certainly harm the U.S. economy and spill around the globe, as the world’s reliance on the stability of the American dollar and the country’s leadership fell into question.

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