By
Mayowa Adebajo
April 12th, 2024
The United States has experienced a very concerning financial crisis in the banking sector this year.
The United States House Republicans are notably pushing a Bill that will help ease President Joe Biden’s worry about the current status of the Debt Ceiling. As reported by Bloomberg, the proposal will explore two options which will either include increasing the limit by $1.5 trillion or to suspend it until March 31, 2024.
As a Democrat-led White House, the good gesture as is being spearheaded by House Speaker Kevin McCarthy will not come for free and per the report, the House Republicans are hoping will push the Executive to generally negotiate spending cuts. The proposed plans come from two members of the House who have a working knowledge of the plans.
The proposal is set to be put up for a vote as early as next week as the US Government runs the risk of financial and economic distress should the debt ceiling not be adjusted as warned by Treasury Secretary Janet Yellen. For the votes to pass in the House, Speaker McCarthy will need as many as 218 lawmakers to back the plans.
According to speculations, it is unsure whether or not the required votes to push the proposal forward have been inked at the time. Speaker McCarthy is unfazed at this time as he has maintained a generally positive disposition to the plan which he is optimistic will pass on the floor.
The current debt ceiling is pegged at $31.4 trillion. Should this ceiling not be increased or suspended, the functioning of the government may be impaired by June. This makes this ample time for the proposal to increase the limit and it will face no such resistance from the Democrats as it is being sponsored by the opposition.
US House Republicans to Support
The United States Congress was under the leadership of Nancy Pelosi for about 2 years and for the majority of the current tenure of President Biden’s administration. While there was still opposition to crucial bills in her time, it is not compared to the current administration where a Republican is the Speaker.
House Republicans are rallying around the bill even though there are concessions set to be made across the board. For instance, while Rep Barry Loudermilk expressed displeasure that the counter-proposal to raise the debt ceiling does not contain as robust a budget cut as he was expecting, he noted that every party must be realistic in their demands.
Additionally, despite being a member of the Republican Party, Rep Tim Burchett said he is not ready to back the bill but is poised to vote for it after seeing the texts.
The United States has experienced a very concerning financial crisis in the banking sector this year. The government including the legislative and the judiciary will undoubtedly do all that is possible to prevent a government shutdown. With the high stakes, all parties are likely to give everything in to ensure this debt ceiling raise proposal passes.