House Speaker Proposes Plan to Raise US Debt Ceiling and Avoid Default

House Speaker Proposes Plan to Raise US Debt Ceiling and Avoid Default

House Speaker Proposes Plan , to Raise US Debt Ceiling , and Avoid Default.

On April 18, U.S. House Speaker Kevin McCarthy unveiled his plan to raise the nation's debt ceiling by $1.5 trillion and cut spending by three times that amount.

On April 18, U.S. House Speaker Kevin McCarthy unveiled his plan to raise the nation's debt ceiling by $1.5 trillion and cut spending by three times that amount.

Reuters reports that the plan is likely to result in a tense partisan debate over government spending and borrowing.

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The proposal would reduce domestic and military spending to 2022 levels, while also capping growth at 1% annually.

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The plan would not impact retirement or health programs projected to grow significantly as the U.S. population ages.

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Reuters reports that while the proposal is likely to be rejected by President Joe Biden and the Senate, McCarthy believes it will create a basis for negotiations.

Reuters reports that while the proposal is likely to be rejected by President Joe Biden and the Senate, McCarthy believes it will create a basis for negotiations.

If the $31.4 trillion debt limit is not raised in the coming weeks, the U.S. would end up in default, which would have a broad impact on the global economy.

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McCarthy's plan would also repeal green-energy incentives, while boosting domestic oil and gas production.

McCarthy's plan would also repeal green-energy incentives, while boosting domestic oil and gas production.

Additionally, the plan would scrap Biden's proposed $400 billion student-loan forgiveness program.

While McCarthy's plan would lower spending by $4.5 trillion over the next decade, it still falls short of compensating for deficits projected to add $20 trillion over the same period.

While McCarthy's plan would lower spending by $4.5 trillion over the next decade, it still falls short of compensating for deficits projected to add $20 trillion over the same period.

President Biden has a choice: Come to the table and stop playing partisan political games, or cover his ears, refuse to negotiate and risk bumbling his way into the first default in our nation's history, Kevin McCarthy, Republican House Speaker, via Reuters.

President Biden has a choice: Come to the table and stop playing partisan political games, or cover his ears, refuse to negotiate and risk bumbling his way into the first default in our nation's history, Kevin McCarthy, Republican House Speaker, via Reuters