McCarthy’s debt-limit plan would ‘take a hatchet’ to key programs, White House says

McCarthy’s debt-limit plan would ‘take a hatchet’ to key programs, White House says

The White House has criticized House Minority Leader Kevin McCarthy’s plan to address the debt limit, saying it would “take a hatchet” to key programs. McCarthy’s plan would tie an increase in the debt limit to a package of conservative priorities, including a ban on vaccine mandates and a prohibition on funding for critical race theory.

The White House has called on Congress to pass a clean debt limit increase, without any additional policy riders. “The debt limit is not a political football to be kicked around,” White House Press Secretary Jen Psaki said in a statement. “It is a critical tool that allows the United States to pay its bills and meet its obligations.”

McCarthy’s plan would also include a provision to prevent the Treasury Department from using “extraordinary measures” to avoid defaulting on the debt. The Treasury Department has used these measures in the past to buy time for Congress to raise the debt limit.

The White House has warned that failing to raise the debt limit could have catastrophic consequences for the economy. “Defaulting on our debt would be a self-inflicted wound that would have long-lasting and far-reaching consequences,” Psaki said.

The debt limit is the maximum amount of money that the federal government can borrow to pay its bills. The current debt limit is $28.4 trillion, and the Treasury Department has said that it will run out of cash to pay the government’s bills in October if Congress does not raise the limit.

McCarthy’s plan is unlikely to pass in the Democratic-controlled House of Representatives, but it could complicate negotiations over the debt limit. Democrats have said that they will not negotiate over the debt limit, and that Republicans should support a clean increase.

The White House has urged Congress to act quickly to raise the debt limit, warning that time is running out. “We need Congress to act now to protect the full faith and credit of the United States,” Psaki said. “The consequences of inaction are too great to ignore.”