Republicans Speak Out Against US Debt-Ceiling Deal, A Sign Of Rocky Road Ahead  

  • A handful of hard-right Republican lawmakers said on Monday they would oppose a deal to raise the United States' $31.4 trillion debt ceiling, in a sign that the bipartisan agreement could face a rocky path through Congress before the U.S. runs out of money next week.
  • Florida Governor Ron DeSantis, a candidate for the Republican 2024 presidential nomination, said the deal does not do enough to change the fiscal trajectory. "After this deal, our country will still be careening toward bankruptcy," he said on Fox News. Still, backers predicted it would clear Congress before the United States runs out of money to pay its bills, which the Treasury Department says will happen on June 5.
  • The 99-page bill would suspend the debt limit through Jan. 1, 2025, allowing lawmakers to set aside the politically risky issue until after the November 2024 presidential election. It would also cap some government spending over the next two years. While some panel members have come out in disagreement with the bill, top congressional Republican Kevin McCarthy states that it will draw on the support of most Republicans who control the House of Representatives.
  • Representative Raul Grijalva, a progressive Democrat, spoke out in reference to an element of the bill that would speed up the permitting process for some energy projects. The bill would also claw back unused COVID-19 funds, and stiffen work requirements for food aid programmes for poor Americans. It would shift some funding away from the tax-collecting Internal Revenue Service, though White House officials say that should not undercut enforcement in the near term.
  • Republicans have argued that steep spending cuts are necessary to curb the growth of the national debt, which at $31.4 trillion is roughly equal to the annual output of the economy. Interest payments on that debt are projected to eat up a growing share of the budget in the decades to come as an ageing population pushes up health and retirement costs, according to government forecasts.

(Source: Reuters)