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WASHINGTON–After House Republicans narrowly passed their debt limit plan, the White House reminded them why the celebration should be short lived.
The bill, which would raise the debt limit into May 2024 and slash spending, is “dead on arrival” in the Senate, according to Majority Leader Chuck Schumer, and President Joe Biden has said he would veto it.
Despite the pats on the back in the House chamber Wednesday evening, Republicans are no closer to increasing the government’s borrowing power and preventing the U.S. from defaulting on its debt.
White House: ‘We pay our bills’
In a statement after the vote, White House Press Secretary Karine Jean-Pierre called on the House GOP to “act immediately” to avoid default.
Republicans have said they will not raise the debt limit without getting spending cuts in return, and Biden wants them to raise the debt limit and negotiate federal spending separately.
If lawmakers do not raise the debt limit, the federal government could run out of money to pay its bills in early June, according to recent projections.
Plan passes:House passes GOP debt limit plan with deep cuts. Pelosi says Republicans are ‘playing with fire.’
Debt limit bill:As McCarthy tries to get House votes, U.S. default now projected in early June
If those projections are true, and Republicans don’t lift the debt limit during the 15 days they are in session between now and then, a default would impact all Americans.
It would mean higher home and auto loan rates and credit card payments, officials have warned, and could stop payments on government programs like Social Security. Bondholders would also not be paid what they’re owed on time, and a domino effect could trigger a recession and stock market crash, economists have said.
“We are not a deadbeat nation,” Jean-Pierre said.
She recalled the words of former President Ronald Reagan, a Republican, who said the U.S. had a “well-earned reputation for reliability and credibility,” which set the country apart on a global stage.
“We pay our bills,” Jean-Pierre said. “Congressional Republicans must do that again now and act to avoid default.”
She criticized the bill for cutting veterans’ health care, education, public safety and more, while extending tax cuts for wealthy corporations.
“The President has made clear this bill has no chance of becoming law,” Jean-Pierre said.
‘End this madness’: GOP calls on Biden to negotiate
House Majority Steve Scalise acknowledged in his comments on the chamber floor that the debt ceiling needs to be addressed, but government spending also needs to be addressed, he said.
Americans are “paying more for everything when they go to the grocery store, the gas pump, anywhere else, because Washington has spent trillions of dollars that this country doesn’t have,” Scalise said.
He called on Biden to get “off the sidelines” and get “to the negotiating table” with House Speaker Kevin McCarthy “so we can solve this problem and put America on a stronger financial footing that will benefit all Americans. It’s time to end this madness.”
Candy Woodall is a politics editor for USA TODAY. She can be reached at cwoodall@usatoday.com or on Twitter at @candynotcandace.
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