A warning on the imminent debt limit: Congress will have to come together to deal with the crises in the future if Congress fails to raise the debt limit

House Speaker Kevin McCarthy, R-Calif., has released a legislative framework to raise the nation’s debt limit for one year, while scaling back federal spending.

The U.S. hit its current debt limit — $31 trillion — in January. The Treasury Department is employing what it refers to as extraordinary measures to essentially act as a band-aid for several months. The measures are due to end in the summer. There would be a debt default, something that would cause worldwide financial markets to fall into a depression and likely cause a recession if Congress fails to raise the debt limit.

“Limited government spending will reduce inflation and restore fiscal discipline in Washington,” McCarthy said on the House floor Wednesday afternoon. “If Washington wants to spend more, it will have to come together and find savings elsewhere — just like every single household in America.”

McCarthy made a similar point in his speech at the New York Stock Exchange on Monday, saying the plan would repeal key parts of the Democrats’ legislative package, including the Inflation Reduction Act, which is currently stuck in courts.

Democrats approved the IRA in order to ease the agency’s back-log, and the Republican bill would target the 80 billion meant to improve the IRS. House Republicans voted to undo the legislation, even though it would not have passed in the Senate. The nonpartisan Congressional Budget Office has estimated the allocated $80 billion over 10 years for the IRS would increase revenues, and that repealing the measure would actually contribute to the deficit.

McCarthy said he’s confident he will get the support of the GOP conference to pass the legislation. With narrow control of the chamber, McCarthy can only afford to lose a handful of members of his conference in order to pass the legislation without Democratic support.

Source: https://www.npr.org/2023/04/19/1170887856/mccarthys-bill-for-the-looming-debit-limit-would-slash-federal-spending

Are Social Security and Medicare under the Debt Ceiling Negotiations? Senator Kevin McCarthy and Rep. Kevin McCarthy apologize for putting Biden on the defensive

Medicare and Social Security, two programs with broad public support but also major drivers of spending, are not going to be affected by the cuts.

Adults without dependents will get a paycheck and learn new skills under the plan. “By restoring these commonsense measures, we can help more Americans earn a paycheck, learn new skills, reduce childhood poverty and rebuild the workforce.”

Democrats are opposed to any attempts to link debt ceiling negotiations to legislation that would require work for assistance program recipients.

House Speaker Kevin McCarthy, R-Calif., is pitching changes to the federal food stamp program that would increase the number of people who have to show they’re working to be eligible to receive help with their groceries.

Speaker McCarthy and his colleagues are making their failure worse by including radical proposals as a lever in the debt limit negotiations.

McCarthy criticized the President for not meeting him to negotiate. The pair was not able to resolve their differences over how to address the debt limit.

“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,” McCarthy said.

Biden has repeatedly said he wants to sign a clean debt limit bill. Schumer says that efforts to address spending cuts are not a precondition for avoiding default.

The Work Requirements for SNAP Supplemental Nutrition Assistance Program Participants: Implications for USDA and other Abelian Populations

In order to qualify for the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps, there are work requirements for people ages 18 to 49 who do not have dependents and are considered “capable.”

The director of the Food Research and Action Center said it’s likely that this is going to lead to more food hardship. “It doesn’t improve people’s ability to find work.” It’s going to cause a food shortage for people that aren’t able to meet the requirements.

When an adult can’t show they are working at least 20 hours a week, they won’t be allowed to have more than three months of food stamps in a 36-month period.

Both those who are unemployed and those who are underemployed were hit. Because often for people to be able to document the sufficient hours of work, it means that they have to have a job of several hours,” Vollinger said. For some of the lower wage jobs, and even a second job, their work schedule can be pretty unpredictable. And sometimes they lack work hours as businesses cut back.”

The chairman of the House Committee on Agriculture called the McCarthy proposal “sensible.” But the panel’s ranking member called it “ungodly.”

“Unfortunately, some Republicans want to take food out of the mouths of vulnerable children and families to pay for irresponsible tax cuts for the wealthiest among us,” said Michigan Sen. Debbie Stabenow, chair of the Senate Agriculture Committee. That should be a surprise to everyone. Our economy and the full faith and credit of the United States is not some bargaining chip.”