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Friday 5 May 2023

Debt limit deadline looms as Democrats, GOP spar on spending

Continued from Front warned that the House bill
would eventually lead to
But they said the House dramatic cuts in that pro-
action was necessary to gram. He said his participa-
get Biden to the negotiat- tion in Head Start allowed
ing table with Republican him to learn, socialize and
Speaker Kevin McCarthy. receive healthy food while
A meeting at the White his parents could stay in the
House with congressional workplace.
leaders of both parties is set “That sounds like good
for next week. economic policy to me,”
Despite the legislation’s Lujan said.
certain demise, Demo- Two other witnesses called
crats are eager to tie Re- on lawmakers to keep pro-
publicans, particularly in visions passed into law last
swing districts and states, August designed to curb
to various provisions in the global warming and boost
bill. Those include one that clean energy production.
would cap next year’s House Republicans pro-
spending at 2022 levels and pose rescinding most of
allow it to rise only 1% annu- the energy tax credits and
ally in ensuing years, much spending in that bill, reduc-
below the rate of inflation. ing deficits by more than
That spending limit, which $500 billion over 10 years.
would account for most of Those tax breaks have
the Republicans’ projected spurred billions of dollars in
$4.8 trillion in savings, could private investment across
have severe impacts on President Joe Biden walks with House Speaker Kevin McCarthy, R-Calif., as he departs the Capitol the country, according to
programs such as Head following the annual St. Patrick’s Day gathering, in Washington, Friday, March 17, 2023. Abigail Ross Hopper, presi-
Start and Meals on Wheels, dent and CEO of the Solar
cancer research and vet- Associated Press Energy Industries Associa-
erans’ health care, Demo- committee. “Now the ball is gress pass a clean debt said, “Tomorrow, they tion. She said that some 40
crats say. in the court of the president ceiling, versus 1.61% if the could put a bill on the floor new electric battery manu-
“If Republicans won’t level to negotiate, and they House Republican legisla- to make sure we won’t de- facturing sites are coming
with the American people want to distract from that.” tion becomes law. fault. I could probably write to states such as Michi-
about their terrible bill, Sen- Grassley said it would be up “We need to end this dra- the bill for them in five min- gan, Arizona and South
ate Democrats are going to Congress to decide how ma as quickly as possible,” utes. It’s pretty easy.” Carolina. Companies are
to do it for them,” Senate to meet the spending caps Zandi said of the debt ceil- But that logic works both also expanding their bat-
Majority Leader Chuck that the House bill would ing impasse. “If we don’t, ways, some witnesses and tery plants in states such as
Schumer, D-N.Y., said. put in place, and “nothing we’re going to go into re- Republican lawmakers Oklahoma and Alabama,
It’s just the latest jousting in the legislation mandates cession and our fiscal chal- said. while wind-power manu-
in Congress over the debt cuts to defense, veterans’ lenges will be made even Brian Riedl, a senior fellow facturing facilities are com-
limit, a legal limit to govern- health care, border secu- worse.” at the Manhattan Institute ing to Iowa, Georgia, Texas
ment borrowing that has rity or other activities that Republicans have argued for Policy Research, told and others.
been raised repeatedly in Republicans have already that reduced spending is lawmakers that Congress “Any threat to the IRA,” she
recent years as the nation’s prioritized.” necessary to curb the infla- has a long history of at- said, referring to Demo-
debt has swelled past $31 The House bill would reduce tion that has increased the taching efforts to reduce crats’ Inflation Reduction
trillion. Urgency around the deficits over 10 years by, cost of fuel, food and hous- deficits to debt ceiling lifts. Act, “is a threat to these
issue intensified this week among other things, claw- ing. They also say the House He said the nation’s debt, factories and these jobs.”
as the Treasury Department ing back unspent COVID bill would put the country’s now more than $31 trillion, Fred Krupp, president of
announced that the “ex- aid, removing the clean finances on a more sustain- means all legislative av- the Environmental Defense
traordinary measures” be- energy tax credits that able path. enues should be open to Fund, called on lawmakers
ing used to avoid a devas- Biden signed into law last Sen. Sheldon Whitehouse, addressing it. to maintain a charge on
tating government default year and reversing Biden’s the Democratic chairman Excluding defense pro- excessive methane emis-
could run out on June 1 — student debt forgiveness of the Senate Budget Com- grams and veterans’ health sions from U.S. oil and gas
giving lawmakers just a few and repayment plan. mittee, mocked that ratio- benefits from the cuts when facilities that the House bill
weeks to find a solution. But those spending reduc- nale. House Republicans enacting future spending would repeal. He said swift
Republicans described the tions could come at a cost. care about the debt “spo- bills would put more pres- cuts in methane could slow
Democratic effort as a dis- Moody’s Analytics esti- radically,” he said, pointing sure on other non-defense the rate of global warming
traction that won’t change mates the Republican bill to $7 trillion in debt that was spending approved by by 30%, plus provide im-
their position: Biden must would cause 790,000 job added under President Congress each year. Such portant health benefits to
negotiate on spending re- losses next year. Donald Trump and $3 trillion spending would fall to 2% Americans near oil or gas
ductions in exchange for Mark Zandi, chief econo- under President George W. of GDP by 2033, the lowest sites because other pollut-
increasing the debt ceiling. mist at Moody’s Analyt- Bush. level since at least the early ants, such as cancer-caus-
“It’s showboating to bad- ics, said the timing of the “They seek to cause cha- 1960s. Such non-defense ing benzene, are emitted
mouth the fact that the spending cuts that would os,” he said. spending does not include alongside methane.
only thing that’s been done occur through the House Meanwhile, the White mandatory funds for Medi- “Congress was right to en-
on the debt ceiling and on bill would “meaningfully House insisted anew Thurs- care and Social Security. act (it), our health and the
the budget is what Repub- increase” the likelihood day that the onus is on Re- Sen. Ben Ray Lujan, D- environment will benefit
licans have done,” said of a recession. Economic publicans in Congress to N.M., said he is one of two because of it, and it should
Sen. Chuck Grassley, the growth, he projects will be raise the debt limit. Budget senators to have attended be left in place to do its
ranking Republican on the about 2.23% should Con- Director Shalanda Young Head Start schooling, and job,” Krupp said.q