McCarthy debt ceiling plan would reduce deficit by $4.8 trillion over next decade, CBO says
Cami Mondeaux
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The debt ceiling package proposal by House Speaker Kevin McCarthy (R-CA) could drop the nation’s deficit by $4.8 trillion over the next 10 years, according to an estimate by the Congressional Budget Office.
McCarthy unveiled his long-awaited budget proposal last week, seeking to raise the debt ceiling over the next year either by $1.5 trillion or until March 31, 2024, whichever comes first. The “Limit, Save, Grow” plan seeks to cool inflation and limit government spending by reducing discretionary funds to pre-pandemic levels and capping budget increases at 1% each year, among other provisions.
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If enacted, McCarthy’s plan would cut discretionary spending by roughly $3.2 trillion over the next decade and decrease mandatory spending by about $0.7 trillion, according to CBO estimates. Meanwhile, revenues would increase by $0.4 trillion by 2033.
As a result, interest on the public debt would decrease by $0.5 trillion, according to the report.
The numbers come as McCarthy seeks to wrangle enough Republican support to get his debt ceiling package through the House, with the speaker hoping to bring the bill to the floor for a vote sometime this week. However, that may be easier said than done, as several House Republicans have already voiced opposition to some provisions, threatening to withhold their support if their demands aren’t met.
However, McCarthy has acknowledged that the legislation is not yet final. Instead, he simply wants to use the legislation as a catalyst to restart conversations with President Joe Biden, who said on Tuesday he would veto the legislation should it reach his desk.
The numbers also come as the Rules Committee meets on Tuesday to discuss whether to advance the bill to the House floor for consideration, with lawmakers considering a number of amendments. Top Republican leaders have remained adamant they won’t accept any changes to the bill and will force it for a vote sometime this week.
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However, at least eight House Republicans — including Reps. Nancy Mace (R-SC), Tim Burchett (R-TN), Eli Crane (R-AZ), Andy Biggs (R-AZ), Thomas Massie (R-KY), Chip Roy (R-TX), George Santos (R-NY), and Matt Gaetz (R-FL) — have indicated they may vote against the measure, putting McCarthy below the threshold needed to pass the legislation.
When asked if he would make changes to get more GOP lawmakers on board, McCarthy told NBC News, “We’ll let you know.”