Debt limit legislation

‘We will pass it': McCarthy whipping debt limit bill

The speaker can only lose four Republicans and still pass his debt limit legislation.

By KATHERINE TULLY-MCMANUS

Speaker Kevin McCarthy’s debt limit bill hits the floor this week, a major test of the California Republican’s leadership of his complex conference and a launchpad for more substantive discussions with the White House.

McCarthy (R-Calif.) was confident on Sunday when asked about the bill’s prospects in the House.

“We will hold a vote this week and we will pass it,” he told Fox News’ Sunday Morning Futures. “I cannot imagine someone in our conference that would want to go along with Biden’s reckless spending.”

Still, the speaker can only lose four Republicans and still pass his debt limit legislation. Most House Republicans are on board, but McCarthy’s leadership team remains short of the 218 votes it needs for passage. Conversations continued over the weekend to try and bring stragglers into the “yes” camp.

Even if McCarthy is able to push his debt limit bill to House approval, the legislation is dead-on-arrival in the Democratic-controlled Senate. Instead, the GOP debt bill is effectively a messaging tool for Republicans in their push for talks with President Joe Biden, who has thus far insisted on a no-strings-attached increase of the debt limit.

The Treasury Department has already been using “extraordinary measures” for months to hold off a default while an unclear “X-date” looms. But there could be more clarity soon: The Congressional Budget office and the Bipartisan Policy Center are planning to release updated projections the second week of May.

Agitation for changes to the legislation began almost as soon as the bill text was released last week, including a higher bar for work requirements for Medicaid and food assistance programs and a sooner start date. As written, the measure would require Medicaid recipients to work 80 hours per month, or 20 hours per week.

“Work Requirements in the House debt limit bill must begin in 2024, not 2025 (as is currently drafted). The reason we demanded 72 hours to review legislation is so we could identify and fix issues with specifics precisely like this. Let’s Get to Work!” Rep. Matt Gaetz (R-Fla.) wrote on Twitter over the weekend.

Gaetz was in a meeting last Thursday with McCarthy’s leadership team, Budget Chair Jodey Arrington (R-Texas), Ways and Means Chair Jason Smith (R-Mo.) and leaders of different factions of the conference, discussing both work requirements and the general temperature across the conference.

The elimination of certain tax credits, from ethanol to biofuels, is another source of stress for some members, but confidence that those wouldn’t survive any White House deal has dialed down the concerns.

Other bill components include the claw-back of upsent pandemic funds and IRS funding for customer service and finding tax cheats, a cap on spending to levels from fiscal year 2022, a roll back energy tax credits from Inflation Reduction Act and tighter work requirements for recipients of food stamps and Medicaid benefits. As written, it would raise the debt limit through March of 2024 or until the debt grows to $32.9 trillion, whichever comes first.

The House Rules Committee takes up the bill Tuesday afternoon, a precursor to a floor vote. Should McCarthy need more time to whip votes, the House, which does not return from its weekend recess until Tuesday, is scheduled to be in on Friday.