House Republicans passed a debt ceiling hike Wednesday.
Speaker Kevin McCarthy pushed his package to raise the debt ceiling by $1.5 trillion through the House in a close vote. But the White House continues to say that it will not negotiate on the issue.
The federal government could default as soon as early June.
U.S. Senate Majority Leader Chuck Schumer blasted the House’s Limit, Save, Grow Act of 2023, calling it a “gut punch” and a “Default On America,” “This plan means fewer jobs, higher costs for the American people, particularly average middle class people, would leave police, first responders, border patrol, and our brave veterans all hanging out to dry. There are dramatic slashes with each of those very necessary functions.”
Schumer said a clean debt ceiling had been passed before in a bipartisan manner twice under President Trump and once under President Obama.
Congressman Nick Langworthy issued a statement on the plan, saying, “Today, I was proud to vote for the Limit Save Grow Act that is the first step to breaking Washington’s addiction to spending and getting our nation’s finances back on track. This plan is a responsible, reasonable framework for spending reforms that the American people are demanding. It’s time for President Biden to stop the games and come to the table to negotiate.”
Schumer said the cuts in the House’s plan are not abstract including the possibility that 2 million New York residents could lose Medicaid coverage, “It slashes federal heating assistance, LIHEAP, that upstate families and seniors use to stay safe. We lose close to a billion dollars in LIHEAP and would reduce the average benefit a household would receive by $400. New York does better with LIHEAP than any other state and it would hurt us dramatically.”
Schumer said there could be a $144 million cut in SNAP benefits for New Yorkers which would affect 53,000 residents in the state.
Moody’s analytics warned that “dramatic” cuts to government spending in the House Republican’s plan would spark a 2024 recession that costs the economy 2.6 million jobs and lifts the unemployment rate near 6%.
A nonpartisan Congressional Budget Office analysis released Tuesday showed the Republican plan would reduce federal deficits by $4.8 trillion over the decade if the proposed changes were enacted into law.