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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Politics

Politics

McCarthy forecasts Republican backing for debt ceiling deal in House.

FILE PHOTO: Speaker of the House Kevin McCarthy (R-CA) arrives for a portrait unveiling ceremony for... FILE PHOTO: Speaker of the House Kevin McCarthy (R-CA) arrives for a portrait unveiling ceremony for former Speaker of the House Paul Ryan on Capitol Hill in Washington, U.S., May 17, 2023. REUTERS/Nathan Howard/File Photo
FILE PHOTO: Speaker of the House Kevin McCarthy (R-CA) arrives for a portrait unveiling ceremony for... FILE PHOTO: Speaker of the House Kevin McCarthy (R-CA) arrives for a portrait unveiling ceremony for former Speaker of the House Paul Ryan on Capitol Hill in Washington, U.S., May 17, 2023. REUTERS/Nathan Howard/File Photo

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On Sunday, Republican U.S. House Speaker Kevin McCarthy predicted that most House Republicans would endorse a new agreement with President Joe Biden to postpone the $31.4 trillion debt cap. However, party hardliners opposed the arrangement.

After weeks of tough discussions, McCarthy and Biden achieved a tentative agreement this weekend. Still, they must pass it through the Republican-controlled House and Democratic-led Senate before June 5 to avert a crushing first-ever default.

Hardline Republicans and progressive Democrats criticized the agreement, finalized by the president and House speaker on Sunday afternoon. Later Sunday, House Republicans will introduce legislation to pass the pact.

The House Freedom Caucus stated they would vote against the arrangement on Wednesday. “We’re going to try,” Freedom Caucus member Chip Roy tweeted Sunday.

McCarthy said “over 95%” of House Republicans were “overwhelmingly excited” about the arrangement, dismissing internal dissent.

“This is a good strong bill that a majority of Republicans will vote for,” the California Republican told Capitol reporters. “You’re going to have Republicans and Democrats be able to move this to the president.”

McCarthy promised to allow any House member to call for a vote to depose him to become speaker, placing him vulnerable to Republican discontent. However, he was “not at all” concerned about that prospect.

Senate Democrats control 51-49, while House Republicans control 222-213. These thin margins indicate that moderates from both sides must accept the bill if the compromise loses the backing of each party’s extreme left and far right wings.

“I’m not happy with some of the things I’m hearing about,” Congressional Progressive Caucus Chair Pramila Jayapal told CNN’s “State of the Union.”

On CBS’s “Face the Nation,” House Democratic leader Hakeem Jeffries said he expected Democratic support for the plan but didn’t say how much.

Democrats, who were to be informed by the White House at 5 p.m. (2100 GMT), feared the compromise would mirror a Republican debt ceiling plan that cleared the House last month and would have slashed domestic spending deeply.

Democratic Representative Jim Himes told Fox News that Biden’s party may back the “small” arrangement.

According to people involved with the talks, the proposal suspends the debt ceiling until January 2025, after the November 2024 presidential election, while increasing military and veterans’ care spending and curbing discretionary domestic programs.

McCarthy told Fox News that the “paygo” provision requires the administration to demonstrate that new expenditure does not raise the deficit. If Congress fails to pass 12 appropriations bills by Oct. 1, the accord would slash all spending by 1%.

Roy tweeted on Sunday that the arrangement will preserve a Democratic-era IRS expansion. However, the deal’s impact on U.S. defense and Ukraine is backing worried Republican Senator Lindsey Graham.

“Do not intend to default on debt, but will not support a deal that reduces the size of the Navy and prevents continued technological and weapons assistance to Ukraine,” Graham tweeted.

“Punting at your opponent’s one-yard line isn’t a winning strategy,” Republican Senator Mike Lee tweeted.

Early deal details suggest Biden fought back effectively on numerous cost-cutting requests on Saturday, suggesting McCarthy may have trouble obtaining votes.

Complete capitulation. “The side with the cards,” Bishop said.

Progressive Democrats in both chambers oppose any deal with food and healthcare work requirements. Sources indicate this contract requires 50-54-year-olds to labor for food handouts.

Several credit-rating agencies are considering downgrading the U.S., which would raise borrowing rates and weaken its role as the world’s financial center.


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