Republican House Speaker Kevin McCarthy has expressed confidence that the majority of House Republicans will support the new agreement reached with President Joe Biden on the suspension of the $31.4 trillion debt ceiling. Both sides have been engaged in intense negotiations for weeks, and a deal has finally been reached, but now they face the daunting task of winning over the Republican-controlled House of Representatives and the Democratic-led Senate before June 5th to avoid what would be the first-ever crippling default.
The agreement has already come under fire from hardline Republicans and progressive Democrats alike. However, McCarthy has dismissed the opposition within his own party as insignificant, claiming that "over 95%" of House Republicans are "overwhelmingly excited" about the deal. A vote on the agreement is expected to take place on Wednesday, with members of the hardline House Freedom Caucus determined to prevent it from passing the House.
To win the speaker's gavel, McCarthy agreed to allow any House member to call for a vote to remove him from his position, which could potentially make him vulnerable to ousting by dissatisfied Republicans. Nevertheless, McCarthy is "not at all" concerned about this possibility.
The narrow margins of control mean that centrists from both sides will have to support the bill if they lose the support of the far left and far right wings of each party. Democratic Representative Pramila Jayapal, who chairs the Congressional Progressive Caucus, has already expressed dissatisfaction with some aspects of the deal, and Democratic leader Hakeem Jeffries has declined to predict how many of his party members would vote for the agreement.
Concerns have been raised about the effects of the deal on US defense and Washington's support for Ukraine, with Senator Lindsey Graham warning that he will not support a deal that reduces the size of the Navy and prevents continued technological and weapons assistance to Ukraine.
The agreement suspends the debt ceiling until January 2025 while providing increased spending on military and veterans' care and capping it for many discretionary domestic programs. The deal would also include a "paygo" provision to ensure that new spending does not increase the deficit, and impose a 1% across-the-board spending cut if Congress fails to enact 12 appropriations bills by October 1.
Several credit-rating agencies have warned that the United States is at risk of a downgrade, which would lead to increased borrowing costs and undermine its position as the backbone of the international financial system.