**House Passes Debt Limit Bill, Setting Stage For Showdown**
House Passes Debt Limit Bill, Setting Stage For Showdown
**_Update (1935ET):_** In response to today's passing of the House GOP debt ceiling solution, the White House issued a statement (https://www.whitehouse.gov/briefing-room/statements-releases/2023/04/26/statement-from-white-house-press-secretary-karine-jean-pierre-2/) claiming that the bill "cuts veterans’ health care, education, Meals on Wheels, and public safety, takes away health care from millions of Americans, and sends manufacturing jobs overseas while they fight to extend the Trump tax cuts for the wealthiest and profitable corporations."
More:
> _President Biden will never force middle class and working families to bear the burden of tax cuts for the wealthiest, as this bill does. The President has made clear this bill has no chance of becoming law._
>
> _In our history, we have never defaulted on our debt or failed to pay our bills. Congressional Republicans must act immediately and without conditions to avoid default and ensure that the full faith and credit of the United States is not put at risk. That is their job. Economists have warned that default could spark a dangerous financial crisis, lead to a recession costing millions of Americans their jobs, endanger hard-working Americans’ retirement savings, and increase long-term federal borrowing costs, adding to deficits and debt. We are not a deadbeat nation. As President Reagan said: “The United States has a special responsibility to itself and the world to meet its obligations. It means we have a well-earned reputation for reliability and credibility — two things that set us apart in much of the world.” We pay our bills. Congressional Republicans must do that again now and act to avoid default._
How long have they had _that_ statement ready to go?
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**_Update (1850ET):_** House Republicans on Wednesday narrowly passed their bill to raise the debt ceiling, while cutting spending and dismantling several items in President Biden's domestic agenda.
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The bill passed by a narrow margin of 217-to-215, with Democrats voting along party lines and four Republicans voting against it (Reps. Matt Gaetz (CA), Andy Biggs (AZ), Ken Buck (CO) and Tim Burchett (TN).
The legislation **would raise the debt ceiling by a year** in exchange for freezing spending at 2022 levels for a decade, which would mark a 14% cut, and roll back several aspects of Biden's landmark health, climate and tax law.
**That said, the bill is DOA** \- given that even if it somehow made it through the Democrat-controlled Senate, President Biden has vowed to veto it.
This means we're headed for a showdown, **as without action by Congress to raise the borrowing limit, the US Government faces a potentially catastrophic default** within the next few months.
The successful vote came after a late-night negotiation among Republicans, ending in Speaker Kevin McCarthy agreeing to jettison a provision which would roll back tax credits that the Biden administration implemented for ethanol.
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**_Update (1026ET):_** Following a GOP closed-party meeting, House Speaker Kevin McCarthy (R-CA) says he's confident that Republicans have enough votes to pass the debt limit bill in a floor vote today.
Senator Chuck Schumer (D-NY), however, dismissed the bill as the "Default On America" (DOA) Act - which of course is true since it will never make it through the Democrat-controlled Senate, much less past President Biden's desk, in its current form.
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As House Republicans' $4.8 trillion debt-limit package hangs in the balance, **Speaker Kevin McCarthy (R-CA) and his top lieutenants made several concessions** in order to secure enough votes to pass the Limit, Save, Grow Act.
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The changes, aimed at winning over holdout Midwestern Republicans who threatened to sink the bill, were the result of a **marathon House Rules Committee meeting** that stretched into early Wednesday morning, and include **an amendment which softens a provision repealing several biofuel tax credits**, according to _Punchbowl News_ (https://punchbowl.news/newsletter/).
> 2) After signaling he was resistent to changes of the bill, McCarthy altered provisions to ethanol tax credits to please midwestern Republicans. Especially the Iowa delegation.
>
> — Chad Pergram (@ChadPergram) April 26, 2023 (https://twitter.com/ChadPergram/status/1651172054148829184?ref_src=twsrc%5Etfw)
> _**McCarthy** can only lose four Republican votes and pass the…