A hard-line Republican coup could not prevent legislation to raise the U.S. debt ceiling from clearing its first procedural hurdle in the House of Representatives on Tuesday evening. Here’s how the drama is playing out on Capitol Hill and a guide to what happens next.
After months of showdowns, then weeks of painstaking negotiations, the two sides finally reached an agreement. It was an uphill battle – but there are steeper hills to climb.
Now the two leaders — Democratic President Joe Biden and Republican House Speaker Kevin McCarthy — must sell their weekend deal to their members of Congress. He believes he has the votes to pass the bill before the deadline, despite some defections from the left and right.
The Treasury has moved on to the day the U.S. will reach its borrowing limit by Monday, June 5.
Financial markets appear calm for the moment as the prospect of global economic chaos that could see the world’s biggest economy default on its $31.4 trillion (£25tn) debt has faded.
That could change quickly, however, if the multi-step process to approve the debt ceiling deal is derailed or blocked in the coming days.
The deal introduces new limits on federal spending and restrictions on low-income assistance programs in exchange for raising the debt ceiling.
It became clear Tuesday that this was not a deal that satisfied conservative hardliners in the House. The question is whether there are enough of them in the right places to make their way. The answer, for the moment, appears to be that they do not.
At a press conference on the steps of the U.S. Capitol earlier Tuesday, 11 members of the ultra-conservative House Freedom Caucus railed against what they saw as insufficient spending cuts and budget caps in the compromise legislation. were
“This deal is a total failure,” said Congressman Scott Perry, the group’s leader. He said that those who stand with him will be totally against this agreement and will do everything possible to stop it.
He also balked when asked if he would call for Mr McCarthy’s removal – a move that would widen the rift between House Republicans.
“No matter what happens, what happened will be held to account until we stop this bill by tomorrow,” said Texas Congressman Chip Roy, another member of the Freedom Caucus. warned
The best chance for firebrand conservatives to kill the compromise bill in its infancy may be Tuesday evening, when the powerful House Rules Committee considers the terms by which the legislation will be debated and passed by the full House. I will be voted.
With two members of the Freedom Caucus on the 13-seat committee, hardliners could side with Democrats and another Republican to force Mr. Biden and Mr. McCarthy back to the drawing board with the debt clock ticking down. can go.
Instead, the committee Republican who has often sided with the Freedom Caucus, Thomas Massey, joined six other Republicans in sending the 99-page bill to the House floor on a 7-6 vote Wednesday evening.
Mr. Roy and Ralph Norman of South Carolina joined the four Democrats in voting against.
“I don’t like the process that led to this bill, I’m not going to lie,” the Kentucky Republican said, before there was enough in the deal to win his support.
Despite the victory for Mr. McCarthy and supporters of the deal, such a spat between the majority party on the rules committee is extremely rare and underscores the strained relationship between House Republicans, who currently hold the majority in that chamber.
“The Republican conference is torn apart right now,” Mr. Roy said of his party on Tuesday afternoon.
After overcoming this first hurdle, here are the remaining steps necessary to end the default crisis:
- The House of Representatives will vote up or down early Wednesday night on the bill, which requires a simple majority to pass.
- The Senate will then consider the bill. Approval would require 60 votes out of the 100-member chamber. The process can move quickly, although individual senators can delay action if they choose.
- If an identical version of the debt agreement passes both the House and Senate, the bill is sent to Mr. Biden for his signature.
At this point, rank-and-file members in both the House and Senate appear ready to fall in line.
There could be some dissent from left-leaning Democrats, who have complained about how the proposed budget cuts only hit social programs and objected to new work requirements on some low-income aid recipients. Is.
However, Democratic hardliners are less organized — and less vocal in their objections — than their conservative counterparts.
