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Details of the agreement between Speaker of the House Kevin McCarthy and President Joe Biden have now emerged and it appears that the agreement to raise the debt ceiling is much worse than what was speculated.
Text of the agreement was released earlier this week and it shows that spending would be frozen at 2022 fiscal year levels, which is well above pre pandemic spending levels. The debt ceiling would be suspended until January 1st 2025. The agreements means that the Federal government is likely to add at least $4 trillion in debt in just 18 months.
The agreement claims that after January 1st 2025 it will limit spending increases to 1% per year, but that doesn’t have any teeth to it. The next congress would easily be able to reverse that deal.
McCarthy is doubling down and is bragging daily about how good this deal supposedly is. But fiscal conservatives got nothing out of this agreement, assuming it passes, and many Conservatives in both houses are furious. Not included in the deal is any work requirements, border security, cutting subsidies to unreliable energy companies, eliminating the 85,000 new IRS agents or even the reins act, which have required that congress votes on spending proposals over $100 million. The only that fiscal conservatives got was a minor cut in IRS spending, but 98% of the IRS expansion will remain in place.
One of the most vocal opponents of Kevin McCarthy and the agreement is Chip Roy.
Chip Roy has assured that the fight is far from over and that he will not support this bill.
Several members are hinting that if McCarthy doesn’t pull this agreement they will move to remove McCarthy as Speaker.
Rep Scott Perrry (PA), Chip Roy (TX) and Anna Paulina Luna (FL) are among the members that have taken a firm stance against this agreement. Rep Dan Bishop (NC) confirmed that introducing a motion to vacate is absolutely on the table.
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