Banking And Finance
Leaders will put tremendous pressure on lawmakers when they return to Washington to back the debt-ceiling bill and endure the combined opposition.
Though US President Biden and US House Speaker Kevin McCarthy currently seem to be on track to secure enough bipartisan support to suspend the debt ceiling, the proposal may still encounter procedural roadblocks, making the race to avert an unprecedented default more challenging.
The House Rules Committee, which serves as the gatekeeper for legislation entering the House floor, will hear the proposal for the first time on Tuesday.
Reps. Chip Roy of Texas and Ralph Norman of South Carolina, two conservative Republicans on the committee, have already declared their opposition to the agreement. There are four Democrats and nine Republicans on the committee.
The debt-ceiling agreement would suspend the borrowing cap for a period of two years while limiting government spending. Democratic-favored domestic spending would be reduced, while military spending would increase by about 3%. Furthermore, it would quicken environmental reviews for energy projects and increase limits on food assistance for some beneficiaries in an effort to encourage them to find employment.
Vocal opponents of the bill in both chambers could impede its passage. Because the agreement doesn't go far enough in limiting federal spending, some conservatives in the House and Senate have said they will vote against it, while some progressives claim the spending restraints are too severe.