(AmericanProsperity.com) – President Joe Biden wants Congress to push through an increase to the US debt limit, to avoid a default on the national debt. He’s facing opposition from the GOP, who want to see spending cuts –- and less borrowing –- instead. So far, he’s already facing opposition from the Republican-controlled House. Now the Senate is preparing to resist his plans too.
Twenty-four GOP senators warn they will oppose debt limit increase without fiscal reforms https://t.co/lirYJEW2zL
— The Hill (@thehill) January 30, 2023
On January 27, almost half of the GOP’s senators signed a letter to Biden, warning him they won’t vote to raise the debt limit –- which is already at $31.4 trillion –- unless the increase is paired with spending reform. The letter, signed by 24 senators led by Mike Lee (R-UT) and Ted Budd (R-NC), calls for change that “brings fiscal sanity back to Washington” and says cuts in spending must match any increase in the debt limit. They describe the current spending policy as “a disaster” and point out that the national debt is now bigger than the economy (US GDP in 2022 was $25.04 trillion). They added that Biden’s administration is still pushing for even more spending that can only be funded by borrowing even more money.
Instead of simply increasing the debt ceiling, the senators are calling for Congress to pass the Prevent Government Shutdowns Act of 2023, which would guarantee continuing appropriations to fund the government even if Congress doesn’t pass spending legislation, and the Full Faith and Credit Act of 2023, which would prioritize federal payments within the existing debt limit.
Meanwhile, House Speaker Kevin McCarthy (R-CA) is also insisting on spending cuts before he’ll allow the debt limit to rise. Even moderate Democrats are now calling for “good faith negotiations” to avoid a standoff that could cause even more economic damage. If there’s going to be a solution, it needs to come soon; the debt limit was reached on January 19, and the Treasury is already using “extraordinary measures” to avoid a catastrophic default. The operative question is whether Biden will rein in his urge to spend before disaster strikes.
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