Pacific Northwest’s Congressional delegation remain far apart on debt ceiling talks after release of House GOP proposal

House Speaker Kevin McCarthy’s proposal tying a hike in the federal debt ceiling to spending cuts has drawn praise from local Republicans for drawing a line in the sand on spending, while Democrats echoed President Joe Biden in calling the cuts a nonstarter.

The sharp division comes as the United States runs the risk of defaulting on its debt as early as this summer, and each party suggesting the other is dragging its feet and not offering a workable solution to address the looming deadline.

In a floor speech announcing the plan Wednesday on Capitol Hill, McCarthy took aim at Biden for failing to negotiate a spending plan with the GOP-controlled House of Representatives. The bill would address inflation by capping spending increases at 1% each year, secure the return of unspent COVID-19 relief money to the federal government that’s not already allocated for a specific purpose and end the “green giveaways” that were part of the Biden administration’s signature climate spending bill passed in 2022, McCarthy said. Those spending moves would be coupled with a $1.5 trillion increase to the debt ceiling.

“House Republicans have a plan,” McCarthy said. “The Senate does not, and the president is ignoring the debt crisis.”

Sen. Patty Murray, chair of the Senate’s powerful Appropriations Committee, said McCarthy is asking for too much and accused the GOP of making the debt issue worse.

“House Republicans are holding the full faith and credit of the United States hostage – risking economic calamity – in order to extract draconian spending cuts that would be a gut punch for families across Washington state, make our communities less safe and make our country less secure and competitive,” Murray said in a statement. “And if playing politics with our credit to slash critical programs for families in Spokane were not bad enough, House Republicans are also proposing to kick families off SNAP, force kids to go hungry, repeal huge portions of our landmark legislation to tackle the climate crisis, and much more – all in exchange for simply doing their job and avoiding a catastrophic default.”

Murray said House Republicans should offer a proposal to lift the debt ceiling without conditions as Democrats did when in control of the chamber under President Donald Trump.

Republican lawmakers in the region commended McCarthy for pushing negotiations.

“To build a stronger future for all Americans, we must address the unsustainable spending and debt crisis,” Rep. Cathy McMorris Rodgers said in a statement Thursday evening. “Republicans are offering solutions to cut spending, ensure America doesn’t default on our debt, protect seniors and lower costs for the hardworking people of this country.

“Our solution ensures Medicaid is helping the most vulnerable by empowering able-bodied adults to find work and opportunities to build a better life,” the congresswoman continued. “It’s time for President Biden and the Democrats to work with us and come to the table to find an agreement and stop their reckless spending spree that is raising people’s cost-of-living across the board.”

McMorris Rodgers’ colleague, Rep. Russ Fulcher of Idaho, echoed those comments.

“With the Limit, Save, Grow Act, House Republicans are following through on their promise to get our fiscal house in order,” Fulcher said. “It is now time for President Biden to engage with Congress to find a solution that addresses our reckless spending and mounting debt. The president’s refusal to negotiate endangers America’s economic health.”

The plan would also codify an energy bill passed by House Republicans in March, and championed by McMorris Rodgers, that would reduce emissions and hasten permitting for energy projects in America. Democrats, including Senate Majority Leader Chuck Schumer, say the proposal contains too many concessions to oil and fossil fuel companies.

Sen. Mike Crapo, the Idaho Republican, also called on Biden to begin talks on a spending deal.

“I remain firm that the White House needs to engage in serious, bipartisan conversations, and I commend Speaker McCarthy for putting forward a proposal to limit federal spending and prevent default,” Crapo said in a statement.

Biden on Wednesday, appearing at a town hall in Maryland, said McCarthy was proposing “massive” spending cuts for programs that working Americans depend on and provided benefits for the wealthy. He also said the legislation was light on details, disputing that it was a plan at all. The president said that provisions for reducing the number of IRS agents hired to conduct audits – a campaign rallying cry for the GOP – would increase the deficit, not reduce it.

“He didn’t tell you exactly how much he wants to cut,” Biden said. “But the House leading Republican proposal will cut critical programs – so-called discretionary spending – by 22%.”

Biden said such cuts would affect the administration of Social Security and Medicare claims, increase costs of child care and negatively affect veterans and people with opioid addictions from receiving treatment.

The state of Washington expects all of its remaining COVID-19 relief money to be designated for a specific purpose by the end of the legislative session Sunday, said Mike Faulk, press secretary for Gov. Jay Inslee. But it isn’t clear if that would fall under the same category as outlined in federal law, meaning the state could be at risk of losing up to $1.6 billion in unspent funds on projects including rental assistance and homelessness services, he said.