On Capitol Hill, Republican Rep. Chip Roy of Texas, one of the McCarthy holdouts and an outspoken critic of government spending, wouldn’t rule out trying to oust McCarthy if he fails to live …
WASHINGTON — The federal government is on track to max out on its $31.4 trillion borrowing authority as soon as this month, starting the clock on an expected standoff between President Joe Biden and the new House Republican majority that will test both parties’ ability to navigate a divided Washington, with the fragile global economy at stake.
The White House has insisted that it won’t allow the nation’s credit to be held captive to the demands of newly empowered GOP lawmakers. But the concessions made by new House Speaker Kevin McCarthy in his arduous path to securing the job raise questions about whether he has the ability to cut any kind of deal to resolve a standoff.
On Capitol Hill, Republican Rep. Chip Roy of Texas, one of the McCarthy holdouts and an outspoken critic of government spending, wouldn’t rule out trying to oust McCarthy if he fails to live up to his pledge to seek spending cuts along with any debt limit increase.Rep. Bob Good, R-Va., said in a Fox News interview on Monday that the debt limit will be “the real test” for conservatives. Republicans have to begin “leveraging power to accomplish what you need to accomplish,” he said.
“We’re going to confront this, and I think the American people have called on us to confront this,” Scalise said. Any effort to compromise with House Republicans could force Biden to bend on his own priorities, whether that’s the funding of the IRS to ensure that wealthier Americans pay what they owe or domestic programs for children and the poor.
Treasury first used these measures in 1985 and has used them at least 16 times since, according to the Committee for a Responsible Federal Budget, a fiscal watchdog. But the extraordinary measures only work for so long, and would likely run out — and put the U.S. at risk of default — sometime around the summer.
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