(CTN News) – A bipartisan compromise debt ceiling deal appears likely to win enough mainstream lawmakers to avoid a first-ever national default on the $31.4 trillion the US owes creditors – despite boisterous criticism from both left and right.
Some in Washington have questioned whether they received enough concessions from the deal, struck between Joe Biden, the Democratic US president, and Kevin McCarthy, the Republican House speaker.
Their support is crucial for the 99-page bill to pass the House and Senate and to avoid a payments default as early as 5 June if it doesn’t pass.
In order to pass the legislation, the Debt House rules committee will meet on Tuesday afternoon to discuss the new bill, called The Fiscal Responsibility Act of 2023.
LaBolt said default would be catastrophic for the American people. A bill to raise the national debt ceiling to $4tn has been sent to legislators of both parties.
According to Pramila Jayapal, chair of the Congressional Progressive Caucus, the White House has to worry about progressive support for the deal.
Tim Kaine, a Virginia Democrat, says he will introduce an amendment to cancel a 300-mile natural gas pipeline project through West Virginia and Virginia.
According to Kaine’s office, permits for the controversial Mountain Valley pipeline were “completely unrelated” to the debt ceiling debate.
Rightwing conservatives also attacked the deal. In a tweet, North Carolina’s Dan Bishop used an emoji of green vomit.
Both parties seemed to be encouraged by the White House on Monday.
According to LaBolt, congressional Republicans are expected to support the compromise. To ensure they got enough support, we worked closely together.”
Non-defense spending is limited, food stamp work requirements are temporarily expanded, and Covid-19 relief funds are clawed back. It also cuts $20bn off $80bn in IRS spending.
It takes the threat of “catastrophic default” off the table, said Biden on Sunday. He added the agreement. “represents a compromise, so no one gets everything they want, but that’s government’s job”.
Meanwhile, he reassured progressive Democrats that he didn’t cave into Republican pressure. “They’ll find out I didn’t.”
Later, centrist Democrats supported it. One senator said, “It’s not a win, but it’s better than default.”
“It’s not everything everyone wanted,” McCarthy said. That’s where we end up in divided government. The bill is very positive.”
However, McCarthy made political hay from his comments.
Right now, Democrats are upset,” McCarthy said.
According to Republican extremist congresswoman Marjorie Taylor Greene on Twitter, McCarthy’s deal on the debt limit will clawback $400 million from the CDC’s Global Health Fund.
The latest deadline set by Janet Yellen, the treasury secretary, to avoid default is 5 June. Grace periods may prevent economic damage or damage to credit ratings.
Marianne Williamson, Democrat presidential candidate, called the debt ceiling deal “a negotiation with terrorists”.
In a tweet, she said the deal protects people who shouldn’t be protected – and it harms the most vulnerable.
The deal has been slammed by Florida governor and presidential hopeful Ron DeSantis.
“Prior to this deal, our country was edging towards bankruptcy, and after this deal, our country will still be heading towards bankruptcy, and to say you can increase spending by $4 trillion in a year and a half is insane,” DeSantis said on Fox News.
Jared Moskowitz of Florida Democrat said raising the debt ceiling was Biden’s “huge win” in comments to Axios. However, both sides are going to sell it as a win. This is how it works.”