Following days of arguing by Speaker Kevin McCarthy and late-night negotiations, House Republicans have backed a measure that could increase the $31 trillion debt ceiling in return for reductions in government expenditures.
The bill, which will raise the debt ceiling by $1.5 trillion in return for preserving $4.5 trillion by limiting expenditure at the financial year 2022 amounts in 2024, passed by a blade-thin vote of 217-215, with 4 Republicans voting against it. Additionally, it would restrict the increase to 1% annually.
The 320-page plan would freeze free expenditure after spending was cut to FY 2022 levels, a $131 billion decrease from present levels.
Speaker McCarthy hopes to start discussions with President Biden by approving the Limit, Conserve, Grow Act despite the White House’s strong refusal to engage in debt ceiling discussions.
Biden has previously stated that he will veto the bill, therefore it is not believed to pass in the Senate.
Republicans claim that their role has been completed, however, by approving a party-line measure.