The House Freedom Caucus proposed a $4 trillion debt ceiling increase, contingent on $4 trillion in spending cuts over 10 years, to fund border security and defense increases. This plan, aiming for a two-year borrowing extension, seeks to secure 218 votes, potentially bypassing Democratic support. The proposal, which includes a two-bill, GOP-only reconciliation strategy, represents a significant political gamble for Republicans, given their historically limited success in raising the debt ceiling without bipartisan cooperation. The plan also contrasts with the House GOP leadership’s preferred approach and has drawn criticism for prioritizing tax cuts for the wealthy.
Read More
House Republicans proposed a draft agreement including $2.5 trillion in mandatory spending cuts to raise the debt ceiling by $1.5 trillion. This plan, revealed in a closed-door meeting, targets programs like Social Security, Medicare, and Medicaid, despite legal limitations on directly cutting Social Security through the proposed reconciliation process. Critics argue these cuts are intended to fund tax cuts for the wealthy, with the only way to meet the proposed spending reductions being drastic cuts to major social programs. The plan underscores concerns about prioritizing tax cuts for corporations and billionaires over vital social safety nets.
Read More
The Senate passed a continuing resolution (CR) to fund the government through March 14th by a vote of 85-11, averting a government shutdown. The bill, also passed by the House 366-34, includes $100 billion in disaster aid and a one-year farm bill. This legislation omits a debt limit extension initially demanded by President-elect Trump, a demand that ultimately led to several failed attempts at compromise. Republicans, in response, agreed to substantial spending cuts and a potential debt limit increase via reconciliation next year.
Read More
Elon Musk and Vivek Ramaswamy, tasked with curbing federal spending, propose eliminating programs lacking explicit spending authorizations, a claim refuted by federal fiscal experts. This misunderstanding stems from conflating authorization (establishing program parameters) with appropriation (allocating funds), which Congress always legally authorizes. Experts argue that lapsing authorizations don’t signify wasteful spending; instead, they often grant agencies flexibility. Ultimately, DOGE’s recommendations are non-binding, leaving final budget decisions to Congress.
Read More
John Q. Hosedrinker