Executive

Debt ceiling deal reached

House Speaker Kevin McCarthy announced a deal with President Biden on the debt ceiling – but many consider it a Faustian bargain.

Published

11 months ago

May 28, 2023

Terry A. Hurlbut

Rep Kevin McCarthy (R-Calif.), Speaker of the House, announced an agreement with President Joe Biden on the national debt ceiling.

Debt ceiling deal pleases no one

Rep. McCarthy posted to Twitter that he and Biden had reached an “agreement in principle” last night (May 27).

I just got off the phone with the president a bit ago. After he wasted time and refused to negotiate for months, we've come to an agreement in principle that is worthy of the American people.

I'll deliver a statement at 9:10pm ET. Watch here:https://t.co/vmn31INPH5— Kevin McCarthy (@SpeakerMcCarthy) May 28, 2023

He did speak to the people at 9:10 p.m. EDT as he promisesd. Kevin Tober of NewsBusters posted a clip:

House GOP Speaker Kevin McCarthy announces the debt ceiling deal will have "historic reductions in spending…no new taxes, no new government programs…" pic.twitter.com/7VWACUXrfI— Kevin Tober (@KevinTober94) May 28, 2023

The Gateway Pundit shared more tweets:

White House says Biden spoke with McCarthy for about 90 minutes tonight. Says he also spoke with Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries in separate calls earlier today.— Cami Mondeaux (@cami_mondeaux) May 28, 2023

So what is next?

– Legislation has to be written
– House members get 3 days to read before voting (looking at a potential Tuesday evening vote)
– If it passes the House, Senate has to vote on it

All of the above has to happen before June 5th.— Cassie Semyon (@casssemyon) May 28, 2023

MORE … WHAT DEMS ARE SAYING: The deal keeps non-defense spending at around FY2023 levels. No budget caps after 2025.— Andrew Desiderio (@AndrewDesiderio) May 28, 2023

MCCARTHY said on the call with House Republicans he spoke to Biden TWICE today— Jake Sherman (@JakeSherman) May 28, 2023

McCarthy says the work requirements are "a little stronger" than what Republicans passed in the Limit, Save, Grow bill— Jake Sherman (@JakeSherman) May 28, 2023

SCALISE said members should plan to be back by Tuesday ahead of a Thursday vote— Jake Sherman (@JakeSherman) May 28, 2023

The Thursday vote schedule follows the Seventy-two Hour Rule, according to which Members must have at least seventy-two hours to vote on any legislation. To complicate matters, the bill is not written at time of posting.

One potential problem emerged: the Democrats proposed a $4 trillion rise in the debt ceiling. They didn’t get that, but they did get a date certain for another negotiation: 1 January 2025. Until then, technically, the national debt is unlimited – that is, without a ceiling.

This means that during the next recession in 2023-2024 if tax revenue declines and spending increases, they can borrow an unlimited amount of money for the spending spree to re-inflate the economy.— Wall Street Silver (@WallStreetSilv) May 28, 2023

Rep. Matt Rosendale (R-Mont.) reacted angrily to the deal, calling it a “disaster.”

But hey, we won’t have to talk about it again until after the 2024 elections so they think that’s good!

I think it’s a disaster!— Matt Rosendale (@RepRosendale) May 28, 2023

Senator Lindsey Graham (R-S.C.) likewise called it a “joke.”

Graham blasts defense spending in debt ceiling deal as 'a joke' https://t.co/xZUOP8PFuV— US Burning (@UsBurning) May 28, 2023

According to Lauren Sforza of The Hill, his main objection was to the Biden administration’s proposed defense budget.

Senator Rand Paul (R-Ky.) accused McCarthy of selling out conservatives on the debt ceiling.

Fake conservatives agree to fake spending cuts. Deal will increase mandatory spending ~5%, increase military spending ~3%, and maintain current non-military discretionary spending at post-COVID levels. No real cuts to see here.

Conservatives have been sold out once again!— Rand Paul (@RandPaul) May 28, 2023

Rep. Chip Roy (R-Texas) gave further details – and he, too, indicated this did not please him. He is very much afraid the national debt will rise another $4 trillion between now and 1 January 2025.

THREAD: Turns out this chart is basically accurate. Will fill it in tomorrow more fully… but to best of our current understanding with NO text… 1) Debt ceiling set til 1/1/2025 – which means unknown debt increase – but $4 Trillion is a good estimate… (1/10) https://t.co/5WYaMNIbLQ— Chip Roy (@chiproytx) May 28, 2023

3) Debt Ceiling “Deal” abandons work requirements for Medicaid (3/10)— Chip Roy (@chiproytx) May 28, 2023

…The deal abandons inclusion of the very powerful anti-regulatory REINS Act (which we just passed through House Judiciary as well) in favor of a form of administrative pay-go which is relatively toothless and/or able to be waived… (5/10)— Chip Roy (@chiproytx) May 28, 2023

…The deal keeps full $80BB expansion of the IRS and the 87,000 employees it funds to target poor/minority 3-5x more – except for $1.9BB for this year… (7/10)— Chip Roy (@chiproytx) May 28, 2023

…Does nothing for the border. Does nothing regarding pistol braces. Does nothing regarding Presidential overreach. And in many ways kills our leverage to get them through the appropriations process… (9/10)— Chip Roy (@chiproytx) May 28, 2023

…Finally, again… this deal raises our debt ceiling an unlimited amount that is likely close to or over $4 Trillion. #DebtCeiling (10/10)— Chip Roy (@chiproytx) May 28, 2023

Ed Krassenstein shared this long-form tweet:

Here are some of the reported details of the new debt limit deal between Biden and McCarthy.

– The debt ceiling is raised for 2 years.
– Non-defense spending is essentially capped for 2024 and 2025.
– The age threshold for SNAP work requirements will increase from 49 to 54 years… pic.twitter.com/Jbh6amNGS9— Ed Krassenstein (@EdKrassen) May 28, 2023

More statements

Rep. Roy dropped another thread, saying Democrats came out far better than some Republicans care to admit:

THREAD: There are members of the GOP claiming Democrats got nothing from the “deal.” Oh really? 1) An uncapped debt ceiling with an expiration date – worth approximately $4 trillion…? 2) basically no cuts – a freeze at bloated 2023 spending level? #DebtCeiling (1/3)— Chip Roy (@chiproytx) May 28, 2023

…6) no REINS act statutory requirement for congress to approve huge regulations – just an “administrative” paygo that the administration will get to enforce? 7) No border security!! – & a deal allowing them to avoid policy riders in the fall… 8) more… (3/3) /end— Chip Roy (@chiproytx) May 28, 2023

Many users, reacting to this news, recalled their opposition to McCarthy taking over as Speaker after Midterms. Indeed, other user was angry enough to call for the Motion to Vacate the Chair.

Vote NO! Motion to vacate! This is last chance to save this country. McCarthy is a con man. Please stop this!— Lookingup52 (@Lookingup52) May 28, 2023

Journalist (and Congressional candidate) Laura Loomer made this dire prediction:

McCarthy debt “deal” is a disaster.

I love President Trump.

But his endorsement of @SpeakerMcCarthy for Speaker is one of the worst decisions he’s ever made.

Trump has a lot of positive accomplishments. But I can’t say his endorsement process is one of those.

Loyalist…— Laura Loomer (@LauraLoomer) May 28, 2023

Terry A. Hurlbut

+ posts

Terry A. Hurlbut has been a student of politics, philosophy, and science for more than 35 years. He is a graduate of Yale College and has served as a physician-level laboratory administrator in a 250-bed community hospital. He also is a serious student of the Bible, is conversant in its two primary original languages, and has followed the creation-science movement closely since 1993.

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Donald R. Laster, Jr

10 months ago

The House of Representatives should follow Article 1 Section 7 Paragraph 1 and create a budget that only allows spending to a certain level. All of the unconstitutional specific Welfare spending needs to be eliminated. The result would be no debt increase and we could start reducing the debt. The core issue is unconstitutional spending.