GOP House debt ceiling plan cuts that may survive Biden negotiations
Jack Birle
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President Joe Biden, House Speaker Kevin McCarthy (R-CA), and other congressional leaders are negotiating an increase to the debt ceiling, but certain aspects of the House GOP’s bill have been sticking points for Democratic leaders.
Biden has reportedly drawn red lines as to what is off limits for cuts, but there are still cuts that could survive in the negotiations. Here is a look at the proposed cuts in the GOP’s Limit, Save, Grow Act of 2023 that are not currently on the chopping block.
Cutting back unspent COVID-19 relief funds
One of the key areas in which Biden and the GOP may come to agreement is canceling expenditures of COVID-19 relief funds that have not been spent but were allocated.
The White House appears likely to permit this rollback, which would save the federal government an estimated $30 billion over the next 10 years, according to the Congressional Budget Office. With the public health emergency for COVID-19 having ended on Thursday and the national emergency having ended last month, the federal response to the pandemic will not be as involved as it was.
Capping spending levels
The House GOP bill reduces federal spending levels to fiscal 2022 levels, which could provide savings of $3.2 trillion over the next 10 years, according to the CBO.
The measure provides the biggest cost savings in the Republican bill and could be maintained in a smaller form because it is not one of the key sticking points with Biden and the Democrats. CNN reported that the White House is willing to discuss spending caps but for a shorter period than the proposed 10 years.
Permitting reforms
Another item that has reportedly not been ruled out is permitting reforms. In the Limit, Save, Grow Act, energy permit and regulation reform created an estimated $3 billion in savings over 10 years, according to the CBO.
Biden has made clear that climate provisions from the Inflation Reduction Act are not negotiable but that permitting reforms regarding energy may be amendable. The CNN report suggested talks on permitting reform are underway between negotiators for all parties.
Items that are off the table, according to reports, include the Inflation Reduction Act and rolling back Biden’s student loan forgiveness plan. Modifications to SNAP and Medicaid are also off-limits.
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Negotiations on the debt ceiling appear to be moving forward despite a scheduled meeting between Biden and the “Big Four” being canceled this week. McCarthy said he expects another meeting between congressional leaders and Biden at the White House next week.
Treasury Secretary Janet Yellen said the U.S. will likely default on its debts by June 1 if the debt ceiling is not raised, making for a quick deadline for Congress and the White House. Rep. Abigail Spanberger (D-VA) has suggested that members of Congress should have their pay withheld until a resolution can be passed to raise the debt ceiling.