McCarthy Waives White Flag on Debt Ceiling

Timothy Birdnow

And here it is!  The McCarthy sell-out deal with Joe Biden.

From Zerohedge:

• The deal raises the debt ceiling by roughly $4 trillion for two years, and is consistent with the structure of budget deals struck in 2015, 2018 and 2019 which simultaneously raised the debt limit.
• According to a GOP one-pager on the deal, it includes a rollback of non-defense discretionary spending to FY2022 levels, while capping topline federal spending to 1% annual growth for six years.
• After 2025 there are no budget caps, only "non-enforceable appropriations targets."
• Defense spending would be in-line with what Biden requested in his 2024 budget proposal - roughly $900 billion.
• The deal fully funds medical care for veterans, including the Toxic Exposure Fund through the bipartisan PACT Act.
• The agreement increases the age for which food stamp recipients must seek work to be eligible, from 49 to 54, but also includes reforms to expand who is eligible.
• Claws back "tens of billions" in unspent COVID-19 funds
• Cuts IRS funding 'without nixing the full $80 billion' approved last year. According to the GOP, the deal will "nix the total FY23 staffing funding request for new IRS agents."
• The deal includes energy permitting reform demanded by Republicans and Sen. Joe Manchin (D-WV)
• No new taxes, according to McCarthy.

Many Republicans aren't on board:

A $4 trillion debt ceiling increase?

With virtually none of the key fiscally responsible policies passed in the Limit, Save, Grow Act kept intact?

Hard pass. Hold the line.

— Rep. Andrew Clyde (@Rep_Clyde) May 27, 2023

The deal adds $4 trillion to the debt, hands away all leverage to the Biden admin for rest of his term, in exchange for freezing/then growing the current woke & weaponized regime, with only 2 yrs of caps designed to fail. Conservatives should fight it with all their might.

— Russ Vought (@russvought) May 28, 2023

We knew McCarthy would negotiate like Paul Ryan or Eric Cantor. And he's just  shown his hand.

Posted by: Timothy Birdnow at 10:16 AM | No Comments | Add Comment
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