House Offers a Serious Package of Savings
Today, House leadership put forward a framework to raise the debt limit while also reducing and capping the growth of discretionary spending, rescinding remaining COVID relief, preventing implementation of the President’s student loan cancellation policies, expanding work requirements, repealing the energy provisions of the IRA, and rescinding the IRA’s IRS enforcement funding. House leadership estimates this plan would save more than $4.5 trillion over a decade.
The following is a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Budget:
The House’s Limit, Save, Grow Act would reportedly save several trillion dollars over the next decade – welcome news in light of the nation’s soaring debt levels. Much like the President’s proposal to save $3 trillion in his budget, this bill is not sufficient to bring our debt to manageable levels but is a realistic and extremely welcome first step. This is a reasonable proposal, which would generate significant savings at a time when the nation desperately needs them.
While the proposal is not a full budget and ignores some of largest parts of the budget, it is rightly focused on improving our dreadful fiscal outlook. We recommend a debt ceiling savings plan only include provisions that reduce the debt rather than add to it. One option that could strengthen the proposal is the inclusion of a commission to deal with some of the drivers of the long-term debt.
We encourage the President and Congress to commence long-overdue discussions on lifting the debt ceiling immediately – time is running out, and we should absolutely not wait until the last minute.
Ideally, policymakers would negotiate budgetary savings through the normal budget process, but the House and Senate Budget Committees have failed to put out budgets so far. This abdication of responsibility complicates the process for addressing our high and rising national debt.
Absent regular order, we encourage the President and Congress to develop a bipartisan deficit reduction deal as quickly as possible.
Importantly, it is critical we lift the debt ceiling as soon as possible without threats, hostage-taking, or drama.
Policymakers should be able to agree that our unsustainable budgetary picture calls for savings, and they should look to all parts of the budget. The self-sabotage of default is the only thing that should not be on the table.
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