The outcome of negotiations between President Biden and McCarthy will need to navigate through the GOP-controlled House and the Democratic-led Senate.
The House Freedom Caucus is pressuring House Speaker McCarthy and Senate Republicans to pass the House-approved debt limit bill
However, the deal’s fate hinges on garnering enough support from House Democrats, as unanimous opposition from the House Freedom Caucus could derail the agreement. At present, the caucus consists of nearly 50 members.
President Biden, House Minority Leader Hakeem Jeffries, and Senate Majority Leader Chuck Schumer have been advocating for a clean debt ceiling increase. In contrast, Senate Minority Leader Mitch McConnell contends that a clean debt ceiling bill lacks the necessary votes without spending reforms. The two sides have a limited timeframe of about two weeks to reach a consensus that can secure congressional approval and avert the potential risk of default.
The GOP-led House passed a bill that would raise the debt limit by $1.5 trillion until the following year
This legislation includes constraints on domestic spending growth and the removal of specific green energy tax credits, which were part of the Democrats’ $740 billion Inflation Reduction Act passed last year.
A spokesperson for the House Freedom Caucus stated that the Limit, Save, Grow Act, passed by the House with 217 votes, represents the official stance of the caucus and the entire House Republican Conference. The caucus is urging Speaker McCarthy and Senate Republicans to utilize all available leverage and tools to ensure the enactment of the Limit, Save, Grow Act.
The spokesperson emphasized that further discussions should be halted until the Senate approves the legislation. The statement from the spokesperson represents the unified position of the conservative caucus.
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