Kevin McCarthy, the Republican speaker of the House, has detailed his plans for averting a looming crisis over the US debt ceiling for the first time, with a bill that would push the risk of a default into next year but would require the rolling back of several White House policies.
McCarthy and House Republicans have sought to tie raising the debt ceiling to steep budget cuts, while president Joe Biden and congressional Democrats have urged Republicans to agree to a higher federal borrowing limit without condition. A failure to raise the debt ceiling risks plunging the US government into default as soon as June, according to some estimates.
McCarthy on Wednesday introduced what he described as a “clear plan for a responsible debt limit increase”. The bill would raise the debt ceiling by $1.5tn, averting risk of default until 2024.