(PartiallyPolitics.com) – House Republicans are considering the options to lift the federal $31.4 trillion debt ceiling and negotiate possible government spending cuts next week when Congress returns. So far, the attempts by the House Republicans have been halted by Democratic President Joe Biden’s demands as he has often stated that the debt ceiling should be raised without any conditions.
During a speech on Monday, House of Representatives Speaker Kevin McCarthy stated that they will set out the plan and conditions that the Republicans want in order to agree to a debt ceiling increase.
He has also pointed out specific details that will be discussed ahead of the talk, with Republicans proposing holding annual spending growth to 1% for a decade as well as a cut in energy production regulations and a push to boost production.
The Republicans currently hold a narrow house majority of 222-213 majority and they have yet to agree on any actual legislation. Republican proposals also need to be negotiated with Biden’s Democrats, as they are the ones with control of the Senate.
The White House has repeatedly stated that the Republicans’ approach to the debt ceiling is unrealistic. Nonpartisan forecasters have warned that if this continues then the federal government might face a historic default this summer if Congress does not take action to increase the debt ceiling. A potential default could damage the U.S. and world economies and could potentially lead to the U.S. credit rating being downgraded.
McCarthy has stated that Republicans are planning on using Wall Street support in order to negotiate spending cuts.
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