The White House on Thursday dismissed House Speaker Kevin McCarthy’s proposal to increase the debt limit and cut government spending, accusing the California Republican of “holding the American economy hostage.”
“Speaker McCarthy sided with the extreme MAGA wing of his conference and released a blueprint to devastate hard-working American families,” White House press secretary Karine Jean-Pierre said in a statement. “MAGA House Republicans are holding the American economy hostage in order to take a hatchet to programs Americans rely on every day to make ends meet.”
The White House’s response comes the day after Mr. McCarthy released a Republican plan to avoid the U.S. defaulting on its bills, which would cause economic chaos across the globe.
Under Mr. McCarthy’s plan, the debt limit would increase by $1.5 trillion or until the end of March 2024, depending on which one comes first. The proposal also includes $4.5 trillion in savings by cutting discretionary spending to fiscal year 2022 levels and limiting the growth of future spending. It would also enable the government to reclaim unspent COVID-19 funds, cancel President Biden’s student loan forgiveness program and rescind funding for the IRS.
Mr. Biden has called on Republicans to pass a “clean” debt ceiling, meaning it’s raised with no spending cuts attached. He also refused to negotiate with Mr. McCarthy until he revealed his own plan. The two haven’t met with each other since February.
Mr. McCarthy, meanwhile, wants spending cuts and policy concessions in exchange for raising the debt limit.
In her statement, Ms. Jean-Pierre said the GOP plan would kill jobs, take health care away from “millions” of Americans, threaten food assistance and raise energy bills and taxes.
“House Republicans must avoid default and stop playing economic brinkmanship with the American people’s livelihoods and retirements,” she said.
• Jeff Mordock can be reached at jmordock@washingtontimes.com.
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