President Joe Biden and House Speaker Kevin McCarthy are brokering a deal to address the nation’s debt limit just days before running out of money, but U.S. Representative Bob Good has big concerns about the deal’s intricacies.
The U.S. reached its legal debt limit of $31.4 trillion in January, and the unresolved issue remains a threat to the nation’s economy as Secretary of the Treasury Janet Yellen has warned that the country will default on its debt if an agreement isn’t reached by June 1. Both McCarthy and Biden have remained stubborn on their respective plans and the stalemate has hindered any progress until recently, when Biden and McCarthy met on Thursday to flesh out a possible deal in the last moments before a default.
However, as they negotiate and rumors of the deal begin to spread, Republicans are casting doubts.
Good, a Republican, appeared on Fox News on Friday and criticized his Republican colleague for the deal he is brokering with Biden. Previously, McCarthy argued that he would refuse to raise the debt limit unless budget cuts were implemented.
When asked about the intricacies of the bill, which is rumored to not include stipulations regarding Biden’s student debt relief plan—a component that Good wanted excised from the deal—Good held a critical view.
“If those rumors are true, this would be a devastating deal for the country,” said Good, who did not vote for McCarthy as House Speaker.
Newsweek reached out to Good’s D.C. office by phone for comment.
What Is Included In The Proposed Debt Limit Deal?
Newsweek reported that under the proposed deal, the debt limit would be raised for two years while imposing strict caps on discretionary spending. Defense spending will rise by 3 percent but nondefense spending will remain neutral in 2024. In 2025, all discretionary spending will grow at 1 percent.
The deal may include some climate attributes, like renewable energy projects, which are in line with Biden’s administration goals. However, the deal could be considered a win for McCarthy if the House Speaker secures the spending caps.
The fate of Biden’s student debt relief plan remains in limbo as the Supreme Court mulls the legality of it, and many Republicans are adamant about excising the relief package from the debt ceiling plan. The issue was of importance to Good, who introduced a bill in March that would overturn Biden’s student debt relief plan and end the payment pause. The bill passed the House on Thursday, and Good voiced displeasure on the debt relief remaining in the spending bill when pressed by Fox News.
McCarthy admitted that the bill is unlikely to please everyone when he spoke to reporters outside of the U.S. Capitol on Thursday.