Elon Musk and President Trump are at it again.
A rift has emerged in the Republican caucus between some of the tech bros and populist economists in the Trump coalition.
The Senate passed the “Big, Beautiful Bill,” but you have the economic populists who&#8217;d like lower taxes and big spending, and then you have the tech guys, and what they&#8217;re mostly concerned about is deregulation; they would like some subsidies aimed at things like AI and green energy.
Thus, we are seeing that all break out into the open with regard to Elon Musk.
“Critics say that President Trump&#8217;s mega bill amounts to an abject surrender in the battle for the future of energy,” <a href="https://www.axios.com/2025/07/01/trump-clean-energy-tax-credits-renewables">Axios reported</a>. “The consequences for U.S. jobs, electricity prices and the arms race could reverberate for decades.”
Musk <a href="https://x.com/elonmusk/status/1939390933205991585">tweeted</a>, “A massive strategic error is being made right now to damage solar/battery. That will leave America extremely vulnerable in the future.”
Jason Bordoff, who leads the Columbia University energy think tank, said the bill could <a href="https://www.axios.com/2025/07/01/trump-clean-energy-tax-credits-renewables">hinder the United States</a> in the AI race with China. He said, “Winning that race is going to require we increase electricity generation capacity in the US really fast by a lot. That soaring demand is creating tailwinds for natural gas and nuclear. But even those great sources cannot ramp up fast enough to meet the urgent near-term needs of data centers and AI infrastructure.&#8221;
He&#8217;s saying you need to throw everything at energy, including so-called renewable energy.
So this is a major battle that&#8217;s broken out again inside the tech-centric part of the Republican Party.
<h3><a href="https://www.dailywire.com/episode/bss-ep-2230-member-exclusive?elementPosition=0&amp;row=0&amp;rowHeadline=The+Ben+Shapiro+Show&amp;rowType=Horizontal+Show+Carousel">WATCH: The Ben Shapiro Show</a></h3>
Beyond that, there was supposed to be an amendment to the &#8220;Big, Beautiful Bill&#8221; in the Senate that was going to protect the development of AI in the United States by creating a federal moratorium to bar state-level experimentation with regulation on AI. Florida couldn&#8217;t have its own AI rules; California its own AI rules.
The idea was that there would be a federal ban on state-level legislation. The federal government could still legislate and regulate with regard to AI, but you don&#8217;t want AI companies having to navigate the thickets of 50 different state regulatory structures in order to develop, because we are in a national competition with China on the development of AI.
But the Senate voted 99-1 to strip a provision that would have blocked states from regulating artificial intelligence for the next ten years.
This is definitely going to hold up the development of AI on a national level.
All of this led to the massive clash now occurring between President Trump and Elon Musk. What exactly happened?
Musk decided that he was going to go to war with the bill again. He threatened to primary senators and congresspeople who voted for the bill. He also vowed to help Thomas Massie — the Republican congressperson who truly gets on President Trump&#8217;s nerves by voting against everything Trump wants — saying he&#8217;s going to help him in a primary.
President Trump then hit back with a long social media post of his own, seeking to frame Musk&#8217;s opposition as a bid to cling to his electric vehicle subsidies. <a href="https://truthsocial.com/@realDonaldTrump/posts/114776149269773065">He wrote</a>:
<blockquote>Elon Musk knew, long before he so strongly Endorsed me for President, that I was strongly against the EV Mandate. It is ridiculous, and was always a major part of my campaign. Electric cars are fine, but not everyone should be forced to own one. Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!</blockquote>
He went right at Elon&#8217;s jugular, basically saying, “Listen, you started DOGE. Why don&#8217;t we examine the cost structure on the Tesla EVs? Why don&#8217;t we examine the cost structure on SpaceX and all the rest?”
This followed Musk pledging he would form a new party he calls the America Party. He wrote, “Nearly the entire House and Senate GOP will lose their primary next year if it&#8217;s the last thing I do on this earth.” He went out of his way to call out House Republicans who call themselves budget hawks, such as Andy Harris of Maryland, and Chip Roy of Texas, as well as Senator Markwayne Mullin of Oklahoma.
Trump is saying, “Listen, buddy, you know, we are friends. We&#8217;re on the same side of this. But if you keep going after this bill and you&#8217;re doing so because you want a subsidy, we could just remove all of those subsidies.”
Musk <a href="https://x.com/elonmusk/status/1940025317701148864">responded</a> on X/Twitter, “So tempting to escalate this. So, so tempting. But I will refrain for now.” 
 
There are a few different factors clashing here, as I’ve said before. On an ideologically and politically pure level, Elon complaining about the “Big Beautiful Bill” is not wrong. It spends far too much money.
But that&#8217;s true for virtually every bill passed at the federal level. That&#8217;s just the reality.
I wish the American people approved of Elon&#8217;s spending plans. I do. I wish we were restructuring our entitlements in a serious way. I wish we weren&#8217;t going to sleepwalk our way like Thelma and Louise right over the cliff, that fiscal cliff that is going to come sometime in the next few years.
I wish we did all these things, but the American public simply is not prepared to do any of those things. And that&#8217;s where you enter the realm of the pragmatic, where President Trump lives.
Is this fight really about EV subsidies? Is this fight truly about political purism, or is it something more personal?
As I&#8217;ve suggested before, the fact that the Trump administration decided they were going to get rid of Elon&#8217;s hand-picked head for NASA — which Sergio Gore was apparently behind — is what ticked Elon off. He hasn&#8217;t let go of it. He&#8217;s still going after the bill. Because of that incident, as well as Elon&#8217;s idealistic view of how politics should work, it should not be a shock that Elon is now attempting to wield his power in a kind of blunderbuss fashion.
It&#8217;s also not a shock that President Trump is slapping back, essentially saying, “Listen, I&#8217;m the president of the United States. Thank you for your help. But I&#8217;m the president. I&#8217;m the one who has to do all this stuff. I&#8217;m the one who has to cut the deals, and I&#8217;m the one who has to live with it if we don’t make the tax cuts permanent.”
This bill indeed has a lot of pork, but so does every single government funding bill of my lifetime. There has yet to be a major government bill that is not a big-spending government bill because the American people lie to themselves all the time. We say we want lower spending, but when asked what we would cut, we start scratching our heads and looking around.
That is the problem if you wish to build a cohesive movement for serious cuts to the government.
That was never the MAGA movement. It wasn&#8217;t. I’ve been speaking publicly about not loving that about MAGA since 2016. President Trump was the one candidate declaring back in 2015 and 2016 that he was not going to touch entitlements. Although I am indeed a big fan of Trump, I’ve criticized him for that position for a decade, because I would love to touch the entitlements.
I think entitlements are a disaster area. They are bankrupting the country. They&#8217;re wildly ineffective as they currently stand. I think there are fixes that could be made to them. I think many of them can be delegated back to the state or local level. And I don&#8217;t think it&#8217;s the proper function of the federal government to be involved in three-quarters of this stuff.
But my opinion is not the MAGA opinion. If you&#8217;re going to be politically pragmatic about this, you have to recognize that what this bill effectively is about, more than anything else, is making sure the tax cuts don&#8217;t go away, making sure defense is paid for, and making sure immigration is paid for, among other things.
Is Elon going to force Trump to fight again? I want to know what the endgame is. What is it that Elon is really looking for here?
If he wants to build a popular movement outside the government in favor of slashing and burning large swaths of the federal government, sign me up today. But if we are talking about the idea that someone like Chip Roy is unsuitable for big government, or if we&#8217;re saying the choices here are letting the tax cuts expire and taxes radically increase, and you still don&#8217;t get lower spending, I think most Americans will choose the bill.
That doesn&#8217;t mean that the bill polls particularly well, because the bill&#8217;s been criticized every which way.
But I guarantee you: If Republicans don&#8217;t get this done and the taxes do increase, that&#8217;s going to be even more unpopular.

President Trump Attends NCAA Division I Wrestling Championship In Philadelphia

Elon Musk, Trump, And The Future Of The GOP

Ben Shapiro

Debt Ceiling

Elon Musk

Federal Government

National Debt

Opinion

President Trump

President Donald Trump singled out Sen. Rand Paul (R-KY) for criticism on Tuesday in a dispute over the &#8220;One Big, Beautiful Bill.&#8221;
The scolding took place on Truth Social shortly after Paul made an appearance on TV in which the senator said he would not support the legislation in its current form because it aims to raise the debt ceiling by several trillion dollars.
&#8220;Rand Paul has very little understanding of the BBB, especially the tremendous GROWTH that is coming. He loves voting &#8216;NO&#8217; on everything, he thinks it’s good politics, but it’s not. The BBB is a big WINNER!!!&#8221; Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/114619628833129608" target="_blank" rel="noopener">said</a> in one post.
Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/114619648032728687" target="_blank" rel="noopener">declared</a> in another post, &#8220;Rand votes NO on everything, but never has any practical or constructive ideas. His ideas are actually crazy (losers!). The people of Kentucky can’t stand him. This is a BIG GROWTH BILL!&#8221;
On CNBC&#8217;s &#8220;Squawk Box,&#8221; Paul <a href="https://x.com/RandPaul/status/1929908175748088234" target="_blank" rel="noopener">said</a> the &#8220;main thing&#8221; he objects to in the massive bill, which contains many provisions in line with Trump&#8217;s second-term agenda, is how it would raise the debt ceiling by another $4-5 trillion. As it stands, the national debt is approaching $37 trillion.
&#8220;That&#8217;s an indication that we&#8217;ll borrow that much. It&#8217;s an indication that we&#8217;ll put the debt on the back burner,&#8221; said Paul, who added that he did not join &#8220;most of the Republicans&#8221; who voted to &#8220;continue the Biden spending levels&#8221; with the six-month continuing resolution Congress passed in March.
Paul said he believes there are three or four Republicans in the Senate who might oppose the bill as it stands. That amount could be enough to stall the legislation&#8217;s progress, given the GOP has only a 53-45 <a href="https://www.senate.gov/history/partydiv.htm" target="_blank" rel="noopener">majority</a>.
&#8220;If there are four of us who want it to be more fiscally conservative, I think we can really reduce the spending levels and perhaps separate out the debt ceiling as well,&#8221; Paul said.
The senator also noted that he is &#8220;pretty much open to compromise on everything else in the bill,&#8221; specifically expressing support for how it seeks to retain the 2017 tax cuts.
Speaker Mike Johnson (R-LA) also defended the legislation from Paul&#8217;s <a href="https://www.dailywire.com/news/rand-paul-warns-big-beautiful-bill-explode-debt" target="_blank" rel="noopener">critique</a> on the debt ceiling in a recent &#8220;Fox News Sunday&#8221; interview. He alluded to how the reconciliation process Republicans are using allows Congress to bypass the Senate&#8217;s 60-vote filibuster threshold.
&#8220;We have to do it,&#8221; Johnson <a href="https://www.dailywire.com/news/speaker-johnson-rebuts-rand-pauls-debt-warning-big-beautiful-bill" target="_blank" rel="noopener">said</a>. &#8220;We&#8217;re not going to get any Democrats to assist on that. So, to get it through the Senate and make sure we don&#8217;t crash the U.S. economy and default on our debts for the first time in history, it has to be part of the reconciliation package.&#8221;

Senator Rand Paul

Trump Puts Rand Paul On Blast Over ‘Big, Beautiful Bill’

Congress

Donald Trump

Executive

Mike Johnson

Politics

Rand Paul

Spending Bill

Tax Cuts

U.S. Senate

House Speaker Mike Johnson (R-LA) is defending the House-<a href="https://www.dailywire.com/news/house-passes-one-big-beautiful-bill-in-massive-win-for-trump" target="_blank" rel="noopener">passed</a> version of President Donald Trump’s “One Big, Beautiful Bill” from <a href="https://www.dailywire.com/news/rand-paul-warns-big-beautiful-bill-explode-debt" target="_blank" rel="noopener">criticism</a> that it would dangerously inflate the national debt from Sen. Rand Paul (R-KY).
Speaking on &#8220;Fox News Sunday&#8221; with anchor Shannon Bream, moments after Paul’s interview on the same program, Johnson diplomatically rebutted the senator’s claims that the bill features “wimpy and anemic” spending cuts and poses a national security threat by “exploding” the national debt.
&#8220;I agree wholeheartedly with what my dear friend, Rand Paul, said. I love his conviction and I share it. The national debt is &#8230; the greatest threat to our national security and deficits are a serious problem,&#8221; the speaker said. &#8220;What I think Rand is missing on this one is the fact that we are quite serious about this. This is the biggest spending cut, Shannon, in more than 30 years, we&#8217;re going to cut over $1.5 trillion in spending, and it&#8217;s a big leap forward.&#8221;
He continued: &#8220;The last time we had a spending cut was three decades ago, and it was only 800 billion, even adjusted for inflation. This is the biggest spending cut, I think, in the history of government on planet earth. Now, is it enough? Of course not. But we have a very delicate balance and we have to start the process. I liken this to an aircraft carrier. You don&#8217;t turn an aircraft carrier on a dime. It takes a mile of open ocean. And so, it took us decades to get into this situation. This is a big step to begin to turn that aircraft carrier.&#8221;
The speaker also took a moment to address &#8220;one important point&#8221; made by Paul.
&#8220;It sounds like his biggest objection is the fact that we are extending the debt ceiling,&#8221; Johnson said. &#8220;That&#8217;s a critically important thing to do. We have to do it. We&#8217;re not going to get any Democrats to assist on that. So, to get it through the Senate and make sure we don&#8217;t crash the U.S. economy and default on our debts for the first time in history, it has to be part of the reconciliation package. And that&#8217;s why the president, Trump, and all the other Republicans in Congress, House and Senate, understand the necessity of this.&#8221;
He added: &#8220;Real quick, important point here. It does not mean that we&#8217;re going to spend more money. We&#8217;re extending the debt ceiling to show to creditors, the bond markets, the stock market, that the Congress is serious about this. President Trump is dialed in 100%. He is a visionary leader. He does not want to spend more money. And he has the same concern about the national debt that Rand Paul and I do. That&#8217;s why we&#8217;re not going to be spending to that level. We&#8217;re just sending a message to our creditors around the world that we&#8217;re serious about all of this.&#8221;
<iframe loading="lazy" title="Speaker Johnson live with Shannon Bream on Fox News Sunday" width="500" height="281" src="https://www.youtube.com/embed/sr9NXt9-CZE?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
Paul, who lamented that the U.S. deficit remains about $2.2 trillion, said he would consider backing the legislation if its proposed $4-5 trillion debt ceiling increase is removed.
&#8220;There&#8217;s got to be someone left in Washington who thinks debt is wrong and deficits are wrong and wants to go in the other direction,&#8221; he said. &#8220;The idea that we&#8217;re going to explode deficits and the projections are now looking at over $3 trillion in deficits over the next 10 years. I think it&#8217;s just &#8230; not a serious proposal.&#8221;

Speaker Mike Johnson

Mike Johnson Rebuts Rand Paul’s Debt Warning On ‘Big, Beautiful Bill’

Taxes

U.S.

U.S. House of Representatives

Sen. Rand Paul (R-KY) criticized the version of President Donald Trump&#8217;s &#8220;One Big, Beautiful Bill&#8221; <a href="https://www.dailywire.com/news/house-passes-one-big-beautiful-bill-in-massive-win-for-trump" target="_blank" rel="noopener">passed</a> by the House last week, warning that it would significantly increase the national debt.
In a Sunday interview with anchor Shannon Bream on &#8220;Fox News Sunday,&#8221; Paul expressed support for the bill&#8217;s tax cuts but described its spending cuts as &#8220;wimpy and anemic.&#8221; Even so, Paul said he could support the bill — if not for concerns about it adding to the nearly $37 trillion national debt.
&#8220;The problem is the math doesn&#8217;t add up,&#8221; Paul said. &#8220;They&#8217;re going to explode the debt by — the House says $4 trillion, the Senate&#8217;s actually been talking about exploding the debt $5 trillion.&#8221;
<blockquote class="twitter-tweet" data-media-max-width="560">
Great joining <a href="https://twitter.com/ShannonBream?ref_src=twsrc%5Etfw">@ShannonBream</a> on <a href="https://twitter.com/FoxNewsSunday?ref_src=twsrc%5Etfw">@FoxNewsSunday</a> to talk about why I oppose the Big Beautiful Bill. <a href="https://t.co/ylvf4TKXrz">pic.twitter.com/ylvf4TKXrz</a>
— Senator Rand Paul (@SenRandPaul) <a href="https://twitter.com/SenRandPaul/status/1926639668960883102?ref_src=twsrc%5Etfw">May 25, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Proponents <a href="https://www.dailywire.com/news/trump-budget-chief-responds-fiscal-hawk-heartburn-over-big-beautiful-bill" target="_blank" rel="noopener">tout</a> how the bill aims to make reforms to rein in spending programs, such as kicking illegal immigrants off Medicaid, and foster economic growth. Yet that may not be enough. Like the House, the Senate has a slim GOP majority, and it&#8217;s not guaranteed the bill will prevail in its current form.
Paul, who lamented that the U.S. deficit remains about $2.2 trillion, said he would consider backing the legislation if its proposed $4-5 trillion debt ceiling increase is removed.
&#8220;There&#8217;s got to be someone left in Washington who thinks debt is wrong and deficits are wrong and wants to go in the other direction,&#8221; he said. &#8220;The idea that we&#8217;re going to explode deficits and the projections are now looking at over $3 trillion in deficits over the next 10 years. I think it&#8217;s just &#8230; not a serious proposal.&#8221;
Confronted with the prospect of a coming U.S. default, Paul said he proposed an amendment that would raise the debt ceiling every three months to leverage spending cuts. However, Republicans are adopting the &#8220;same playbook&#8221; as the Democrats and keep avoiding the issue, he said.
Paul cautioned that borrowing to fund &#8220;free stuff&#8221; such as healthcare drives a $3 trillion deficit, triggering inflation that harms beneficiaries, and he bemoaned a failure to advance DOGE-proposed spending cuts or rescission packages.
The national debt, with $7 trillion in spending against $5 trillion in revenue, is the &#8220;greatest threat&#8221; to U.S. national security, Paul said.
&#8220;Conservatives do need to stand up and have their voice heard,&#8221; he declared. &#8220;This is a problem we&#8217;ve been facing for decades now, and if we don&#8217;t stand up on it, I really fear the direction the country is going.&#8221;

Sen. Rand Paul (R-KY)

Rand Paul Warns ‘Big, Beautiful Bill’ Will ‘Explode The Debt’

Treasury Secretary Scott Bessent argued on Friday that the country&#8217;s massive debt can be controlled by growing the U.S. economy.
Bessent addressed concerns over President Donald Trump&#8217;s &#8220;Big, Beautiful Bill&#8221; adding to the national deficit during a segment with Fox News host Bill Hemmer. A Congressional Budget Office <a href="https://www.cbo.gov/system/files/2025-05/61422-Reconciliation-Distributional-Analysis.pdf" target="_blank" rel="noopener">report</a> released earlier this week said the Republican bill passed by the House on early Thursday morning will add $3.8 trillion to the deficit over the next decade. The national debt is <a href="https://www.usdebtclock.org/index.html" target="_blank" rel="noopener">rapidly approaching</a> $37 trillion as the federal deficit currently sits at over $2 trillion.
&#8220;We think that we can both grow the economy and control the debt,&#8221; Bessent said. &#8220;And what&#8217;s important, Bill, is that the economy grows faster than the debt.&#8221;
He added that Americans should focus on the debt-to-GDP ratio &#8220;because we can grow our way out of this.&#8221; In December, U.S. debt accounted for <a href="https://www.ceicdata.com/en/indicator/united-states/government-debt--of-nominal-gdp#:~:text=United%20States%20Government%20Debt:%20%25%20of%20GDP,-1969%20%2D%202024%20%7C%20Quarterly&amp;text=United%20States%20Government%20debt%20accounted,Mar%201969%20to%20Dec%202024." target="_blank" rel="noopener">124%</a> of the nation&#8217;s nominal GDP, which was down from the all-time high of 130.4% in March of 2021.
&#8220;If we change the growth trajectory of the country, of the economy, then we will stabilize our finances and grow our way out of this,&#8221; Bessent continued.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
.<a href="https://twitter.com/SecScottBessent?ref_src=twsrc%5Etfw">@SecScottBessent</a>: &quot;What&#39;s important is that the economy grows faster than the debt&#8230; If we change the growth trajectory of the country, of the economy, then we will stabilize our finances and grow our way out of this.&quot; <a href="https://t.co/aplXNS5mLP">pic.twitter.com/aplXNS5mLP</a>
&mdash; Rapid Response 47 (@RapidResponse47) <a href="https://twitter.com/RapidResponse47/status/1925907334640865476?ref_src=twsrc%5Etfw">May 23, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
The approach touted by Bessent focuses on reducing taxes, a major part of Trump&#8217;s &#8220;Big, Beautiful Bill.&#8221; The idea is that lower taxes and deregulation will create a thriving economy and boost manufacturing, sales, and consumer spending, which will in turn increase tax revenue without raising taxes.
Last year, however, the Congressional Budget Office <a href="https://www.cbo.gov/publication/59711" target="_blank" rel="noopener">projected</a> that the deficit would continue to outpace economic growth over the next 30 years.
<a class="c-link" href="https://get.dailywire.com/subscribe/plus/?utm_medium=website&amp;utm_source=editorial&amp;utm_campaign=memorial&amp;utm_content=editorialmemorialday" target="_blank" rel="noopener noreferrer" data-stringify-link="https://get.dailywire.com/subscribe/plus/?utm_medium=website&amp;utm_source=editorial&amp;utm_campaign=memorial&amp;utm_content=editorialmemorialday" data-sk="tooltip_parent">Memorial Day Sale – Get 40% Off New DailyWire+ Annual Memberships</a>
&#8220;The deficit increases significantly in relation to gross domestic product (GDP) over the next 30 years, reaching 8.5 percent of GDP in 2054,&#8221; the office stated. &#8220;That growth results from rising interest costs and large and sustained primary deficits, which exclude net outlays for interest.&#8221;
During the 2024 campaign, Bessent said that his goal is to &#8220;cut the deficit to 3% by 2028; achieve 3% real economic growth, largely through deregulation; and then add 3 million new barrels of energy per day.&#8221; He told <a href="https://www.bloomberg.com/news/articles/2024-08-07/five-questions-for-trump-adviser-and-key-square-group-founder-scott-bessent?sref=17aozLHf" target="_blank" rel="noopener">Bloomberg</a> that Trump is concerned about addressing the national debt and wants to get it under control &#8220;without causing a recession.&#8221;
Some conservative Republicans raised concerns about Trump&#8217;s &#8220;Big, Beautiful Bill&#8221; not doing enough to cut back on government spending. Two House Republicans, Reps. Thomas Massie of Kentucky and Warren Davidson of Ohio, <a href="https://www.foxnews.com/politics/gop-holdouts-sound-alarm-36t-debt-crisis-trumps-big-beautiful-bill-passes-house-vote" target="_blank" rel="noopener">voted against</a> the legislation, citing the federal deficit.
&#8220;While I love many things in the bill, promising someone else will cut spending in the future does not cut spending. Deficits do matter and this bill grows them now. The only Congress we can control is the one we’re in. Consequently, I cannot support this big deficit plan. NO,&#8221; Davidson said on Thursday.
The White House called the two GOP congressmen &#8220;grandstanders.&#8221;
&#8220;I don&#8217;t think he likes to see grandstanders in Congress,&#8221; White House Press Secretary Karoline Leavitt said of Trump&#8217;s thoughts on Massie and Davidson. &#8220;What&#8217;s the alternative? I would ask those members of Congress. Did they want to see a tax hike? Did they want to see our country go bankrupt? That&#8217;s the alternative by them trying to vote ‘no.’ The president believes the Republican Party needs to be unified.&#8221;
In the Senate, the bill faces more hurdles as multiple Republicans have raised concerns on numerous topics. Sen. Rand Paul (R-KY) <a href="https://thehill.com/homenews/senate/5314189-rand-paul-house-gop-budget-bill/" target="_blank" rel="noopener">said</a> he will vote against the bill unless they &#8220;take the debt ceiling off of it.&#8221;
“We’ve never, ever voted to raise the debt ceiling this much. It’ll be a historic increase. I think it’s not good for conservatives to be on record supporting a $4 [trillion] or $5 trillion increase in the debt ceiling,” Paul said.

Scott Bessent

Bessent Says U.S. Can ‘Grow Our Way Out Of’ National Debt Crisis By Focusing On Economy

spending

Trump Administration

The GOP-controlled <a href="https://www.dailywire.com/topic/u-s-house-of-representatives" target="_blank" rel="noopener">House</a> rejected on Thursday evening a revamped spending bill that would stave off a federal <a href="https://www.dailywire.com/topic/government-shutdown" target="_blank" rel="noopener">government shutdown</a> by the end of the week, leaving the fate of the measure backed by President-elect <a href="https://www.dailywire.com/topic/donald-trump" target="_blank" rel="noopener">Donald Trump</a> and his close allies in doubt.
Just hours after the new deal was <a href="https://www.dailywire.com/news/house-gop-reaches-new-deal-on-spending-after-cramnibus-falters" target="_blank" rel="noopener">unveiled</a>, 172 Republicans and two Democrats <a href="https://clerk.house.gov/Votes/2024516" target="_blank" rel="noopener">voted for the bill</a>. It failed to pass under suspension of the rules, meaning the bill needed a two-thirds majority for it to succeed. Another 38 Republicans voted against the bill, siding with the majority of Democrats.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
Revised GOP CR fails to even get a majority, let alone two-thirds. 38 Republicans defy Trump. Just 2 Dems voted for the bill. <a href="https://t.co/Y1dZVGyTR9">pic.twitter.com/Y1dZVGyTR9</a>
&mdash; Jamie Dupree (@jamiedupree) <a href="https://twitter.com/jamiedupree/status/1869895034499224049?ref_src=twsrc%5Etfw">December 19, 2024</a></blockquote>
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The Hill&#8217;s Emily Brooks <a href="https://x.com/emilybrooksnews/status/1869897907358384222" target="_blank" rel="noopener">reported</a> that Majority Leader Steve Scalise (R-LA) said the bill would not go to the Rules Committee, a move that would pave the way to a vote requiring only a simple majority for success, but stressed the legislation is not &#8220;dead&#8221; as members would &#8220;continue having talks.&#8221;
As evidenced by a <a href="https://x.com/EricLDaugh/status/1869885482131243090" target="_blank" rel="noopener">tense debate</a> on the House floor, at least some of the Republican opposition to the spending legislation rests with how the bill will extend a suspension of the debt ceiling for another two years beyond January of next year, when the current suspension is slated to expire.
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.<a href="https://twitter.com/SpeakerJohnson?ref_src=twsrc%5Etfw">@SpeakerJohnson</a> on CR: &quot;This is Washington. This is how lawmaking is done&#8230;The only change in this legislation is that we are going to push the debt limit to January 30, 2027.&quot; <a href="https://t.co/x5FKmAhZWx">pic.twitter.com/x5FKmAhZWx</a>
&mdash; CSPAN (@cspan) <a href="https://twitter.com/cspan/status/1869892131780759765?ref_src=twsrc%5Etfw">December 19, 2024</a></blockquote>
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House Speaker <a href="https://www.dailywire.com/topic/mike-johnson" target="_blank" rel="noopener">Mike Johnson</a> (R-LA) pushed back on the criticism, saying to reporters before the bill failed, &#8220;Even though this vote would push the debt limit to 2027, it in no way reflects any lack of enthusiasm on our part to get about those serious cuts for the American people.&#8221;
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Congressional leaders initially revealed a <a href="https://www.dailywire.com/news/congress-reveals-another-stopgap-bill-to-avert-government-shutdown" target="_blank" rel="noopener">1,547-page stopgap bill</a> that had been negotiated between the GOP-led House and Democrat-controlled Senate on Tuesday night. In the face of intense GOP backlash, House Republicans shaved down the length to 116 pages in the <a href="https://docs.house.gov/billsthisweek/20241216/American%20Relief%20Act%202025.pdf" target="_blank" rel="noopener">latest version</a>.
<a href="https://x.com/liz_elkind/status/1869844847169024262" target="_blank" rel="noopener">According</a> to <a href="https://x.com/MZanona/status/1869845128170614956" target="_blank" rel="noopener">reports</a>, <a href="https://x.com/MZanona/status/1869845128170614956" target="_blank" rel="noopener">top-line</a> takeaways from the new deal include a three-month CR, two-year suspension of the debt ceiling until January 2027, a &#8220;clean&#8221; farm bill package, $110 billion disaster package, clean health extenders without pharmacy benefit manager reform, <a href="https://www.whitehouse.gov/omb/paygo/" target="_blank" rel="noopener">PAYGO Scorecard</a> wiped to zero, and no <a href="https://ethanolproducer.com/articles/short-term-funding-bill-includes-e15-farm-bill-provisions" target="_blank" rel="noopener">E15 provisions</a> in a blow to the ethanol industry.
Trump <a href="https://x.com/karolineleavitt/status/1869851595648970941" target="_blank" rel="noopener">celebrated</a> the new version of legislation and encouraged lawmakers to vote in favor of it. He alluded to his forthcoming second term and GOP control of Congress, saying, &#8220;Now we can Make America Great Again, very quickly, which is what the People gave us a mandate to accomplish.&#8221;
Provisions cut from the original <a href="https://docs.house.gov/billsthisweek/20241216/CR.pdf" target="_blank" rel="noopener">CR</a> include a pay raise for lawmakers, the <a href="https://www.dailywire.com/news/spending-proposal-reauthorizes-state-dept-agency-tied-to-domestic-censorship-effort" target="_blank" rel="noopener">reauthorization</a> of a State Department agency critics say is at the center of a government “censorship scheme,&#8221; and a section allowing the transfer of jurisdiction of the RFK stadium site from the federal government to Washington, D.C.
Other elements from the initial CR legislation seem to have made it in some form or another into the Republicans&#8217; revamped measure, such as funds for the <a href="https://x.com/bresreports/status/1869180846101447119" target="_blank" rel="noopener">rebuilding</a> of Maryland&#8217;s Francis Scott Key Bridge, which was devastated by a ship collision earlier this year, and some other items.
<a href="https://www.dailywire.com/topic/elon-musk" target="_blank" rel="noopener">Elon Musk</a>, who has been tasked with helping to lead the new <a href="https://www.dailywire.com/topic/department-of-government-efficiency-doge" target="_blank" rel="noopener">Department of Government Efficiency (DOGE)</a>, and Trump condemned the initial CR. Many Republicans piled on what they slammed as the <a href="https://x.com/JohnCornyn/status/1869467103021121631" target="_blank" rel="noopener">&#8220;cramnibus,&#8221;</a> prompting House GOP leadership to begin work on the Plan B offering.
Many Democrats criticized their GOP colleagues for torpedoing the original CR deal after weeks of negotiations. In a statement, White House Press Secretary Karine Jean-Pierre said, &#8220;Republicans are doing the bidding of their billionaire benefactors at the expense of hardworking Americans.&#8221;

House Fails To Pass Trump-Backed Spending Deal In First Go

<a href="https://www.dailywire.com/topic/u-s-house-of-representatives" target="_blank" rel="noopener">House</a> Republicans agreed Thursday on a revamped stopgap bill to avert a <a href="https://www.dailywire.com/topic/government-shutdown" target="_blank" rel="noopener">government shutdown</a> by the end of the week after the previous continuing resolution (CR) packed with a bunch of add-ons quickly collapsed in the face of opposition from many congressional Republicans, President-elect <a href="https://www.dailywire.com/topic/donald-trump" target="_blank" rel="noopener">Donald Trump</a>, and <a href="https://www.dailywire.com/topic/elon-musk" target="_blank" rel="noopener">Elon Musk</a>.
Top-line takeaways from the <a href="https://docs.house.gov/billsthisweek/20241216/American%20Relief%20Act%202025.pdf" target="_blank" rel="noopener">new deal</a> include a three-month CR, two-year suspension of the debt ceiling until January 2027, a &#8220;clean&#8221; farm bill package, $110 billion disaster package, clean health extenders without pharmacy benefit manager reform, <a href="https://www.whitehouse.gov/omb/paygo/" target="_blank" rel="noopener">PAYGO Scorecard</a> wiped to zero, and no <a href="https://ethanolproducer.com/articles/short-term-funding-bill-includes-e15-farm-bill-provisions" target="_blank" rel="noopener">E15 provisions</a> in a blow to the ethanol industry, <a href="https://x.com/liz_elkind/status/1869844847169024262" target="_blank" rel="noopener">according</a> to multiple <a href="https://x.com/MZanona/status/1869845128170614956" target="_blank" rel="noopener">reports</a>.
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1,547 pages ➡️ 116 pages overnight. 
Trump’s <a href="https://twitter.com/DOGE?ref_src=twsrc%5Etfw">@DOGE</a> team in action. <a href="https://t.co/sAxa5y74Qb">pic.twitter.com/sAxa5y74Qb</a>
&mdash; Congressman Dan Meuser (@RepMeuser) <a href="https://twitter.com/RepMeuser/status/1869858500639371613?ref_src=twsrc%5Etfw">December 19, 2024</a></blockquote>
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On Truth Social, Trump <a href="https://x.com/karolineleavitt/status/1869851595648970941" target="_blank" rel="noopener">celebrated</a> the legislation — which was shaved down from 1,547 pages in its original form to 116 pages in the latest version — and encouraged lawmakers to vote in favor of it.
&#8220;SUCCESS in Washington! Speaker Mike Johnson and the House have come to a very good Deal for the American People. The newly agreed to American Relief Act of 2024 will keep the Government open, fund our Great Farmers and others, and provide relief for those severely impacted by the devastating hurricanes,&#8221; Trump said. &#8220;A VERY important piece, VITAL to the America First Agenda, was added as well &#8211; The date of the very unnecessary Debt Ceiling will be pushed out two years, to January 30, 2027. Now we can Make America Great Again, very quickly, which is what the People gave us a mandate to accomplish. All Republicans, and even the Democrats, should do what is best for our Country, and vote &#8216;YES&#8217; for this Bill, TONIGHT!&#8221;
While a timeline was not immediately announced, The Washington Examiner&#8217;s Cami Mondeaux <a href="https://x.com/cami_mondeaux/status/1869847150768861196" target="_blank" rel="noopener">reported</a> on X that one lawmaker said members have been told a vote on the plan could happen at 6 or 7 p.m. ET.
But House Republican leadership &#8220;does not currently have same-day authority, which allows them to vote on a rule the same day it comes out of the Rules Committee,&#8221; Punchbowl News&#8217; Jake Sherman <a href="https://x.com/JakeSherman/status/1869853123348705355" target="_blank" rel="noopener">posted</a> to X, adding, &#8220;They will need a rule for this bill — dont think there&#8217;s a prayer it passes on suspension,&#8221; which would require a two-thirds majority to succeed. He further <a href="https://x.com/JakeSherman/status/1869854859081757043" target="_blank" rel="noopener">explained</a> that many Democrats would be needed to pass it in such a way.
&#8220;When it fails — and it will, most likely — the GOP leadership will go to Rules and get a rule and then vote on it again. The second time will be under a simple majority as long as they can get a rule out of the Rules Committee,&#8221; Sherman said. &#8220;The first vote allows them to see who is against it and whip it.&#8221;
If the deal passes the GOP-led House, it would then head over to the Democrat-controlled Senate for consideration. The deadline to stave off a shutdown is midnight on Friday. Whatever may get through Congress would then be sent to President Joe Biden to sign.
The original <a href="https://docs.house.gov/billsthisweek/20241216/CR.pdf" target="_blank" rel="noopener">CR</a> introduced by congressional leaders on Tuesday evening was filled with all kinds of add-ons that appear to have been cut from the new deal, including a pay raise for lawmakers, the <a href="https://www.dailywire.com/news/spending-proposal-reauthorizes-state-dept-agency-tied-to-domestic-censorship-effort" target="_blank" rel="noopener">reauthorization</a> of a State Department agency critics say is at the center of a government “censorship scheme,&#8221; and a section allowing the transfer jurisdiction of the RFK stadium site from the federal government to Washington, D.C. The revamped bill retains funds for the <a href="https://x.com/bresreports/status/1869180846101447119" target="_blank" rel="noopener">rebuilding</a> of Maryland&#8217;s Francis Scott Key Bridge, which was devastated by a ship collision earlier this year, and some other items.
Musk, who has been tasked with helping to lead the new <a href="https://www.dailywire.com/topic/department-of-government-efficiency-doge" target="_blank" rel="noopener">Department of Government Efficiency (DOGE)</a>, and Trump condemned the initial CR offering. Emboldened by their opposition, many Republicans said they would not vote for what they slammed as the <a href="https://x.com/JohnCornyn/status/1869467103021121631" target="_blank" rel="noopener">&#8220;cramnibus,&#8221;</a> signaling that it would not be able to pass without the support of Democrats in the House. Amid the firestorm, House Republicans began work on a Plan B while Democrat leaders <a href="https://x.com/bresreports/status/1869542348650344750" target="_blank" rel="noopener">indicated</a> they <a href="https://x.com/thehill/status/1869786286560542948" target="_blank" rel="noopener">preferred</a> the original plan.
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In a joint <a href="https://x.com/JDVance/status/1869495076604227726" target="_blank" rel="noopener">statement</a> on Wednesday evening with Sen. JD Vance (R-OH), the vice president-elect, Trump said Congress should pass a temporary funding bill only if it includes a debt ceiling increase and no &#8220;DEMOCRAT GIVEAWAYS.&#8221; On Wednesday night, after leaving House Speaker Mike Johnson&#8217;s (R-LA) office, Vance <a href="https://x.com/cristina_corujo/status/1869509292778463694" target="_blank" rel="noopener">told reporters</a> they had a <a href="https://x.com/AnnieGrayerCNN/status/1869575481072533661" target="_blank" rel="noopener">&#8220;productive conversation&#8221;</a> and noted that Trump supports &#8220;a clean CR so long as it contains a debt limit increase.&#8221;
Congress last passed <a href="https://www.dailywire.com/news/senate-passes-debt-ceiling-bill-to-avert-default-ahead-of-x-date" target="_blank" rel="noopener">legislation</a> to address the debt ceiling in the late spring of 2023. That measure, negotiated under then-Speaker Kevin McCarthy (R-CA), suspended the debt limit until January 2025, staving off a U.S. debt default, and sought to implement various restraints on spending that would be able to reduce budget deficits by an estimated $1.5 trillion over the next decade.

‘SUCCESS’: House GOP Spending Deal Gets Trump Stamp Of Approval Ahead Of Vote

Government Shutdown

With the collapse on Wednesday of a bloated stopgap bill to avert a <a href="https://www.dailywire.com/topic/government-shutdown" target="_blank" rel="noopener">government shutdown</a> by the end of the week, there has been a push among Republican members of Congress to pass a &#8220;clean&#8221; continuing resolution (CR) without all the add-ons that doomed the initial measure. But the final product may yet have some, albeit fewer additions than what critics derided as the <a href="https://x.com/JohnCornyn/status/1869467103021121631" target="_blank" rel="noopener">&#8220;cramnibus.&#8221;</a>
After President-elect <a href="https://www.dailywire.com/topic/donald-trump" target="_blank" rel="noopener">Donald Trump</a> came out against the bloated CR negotiated by leaders in the GOP-led House and Democrat-controlled Senate, Sen. Mike Lee (R-UT) <a href="https://x.com/SenMikeLee/status/1869489204415348851" target="_blank" rel="noopener">declared</a>: &#8220;Well, that’s that. Time to pass a real CLEAN CR. Next time we can save a few trees and leave the 1547 page monstrosities in the drafts folder.&#8221;
By advocating for a &#8220;clean&#8221; CR, lawmakers on Capitol Hill are pushing for a bill that would temporarily fund the federal government without being filled with the pork often packed into massive spending bills. As Rep. Nancy Mace (R-SC) pointed out, the <a href="https://www.congress.gov/118/plaws/publ83/PLAW-118publ83.pdf" target="_blank" rel="noopener">last CR</a> in September was <a href="https://x.com/RepNancyMace/status/1869458107828736197" target="_blank" rel="noopener">just 21 pages</a>.
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The <a href="https://docs.house.gov/billsthisweek/20241216/CR.pdf" target="_blank" rel="noopener">CR</a> introduced by congressional leaders on Tuesday night sought <a href="https://www.dailywire.com/news/congress-reveals-another-stopgap-bill-to-avert-government-shutdown" target="_blank" rel="noopener">to provide</a> funds to the federal government through March 14, 2025, allocate more than <a href="https://x.com/cami_mondeaux/status/1869167167071236572" target="_blank" rel="noopener">$100 billion in disaster aid</a>, boost farmers, implement some healthcare reforms, finance the <a href="https://x.com/bresreports/status/1869180846101447119" target="_blank" rel="noopener">rebuilding</a> of Maryland&#8217;s devastated Francis Scott Key Bridge, create a <a href="https://x.com/jamiedupree/status/1869363001092091966" target="_blank" rel="noopener">pay raise</a> for Congress, and much more.
<a href="https://www.dailywire.com/topic/elon-musk" target="_blank" rel="noopener">Elon Musk</a>, who has been tasked with helping to lead the new <a href="https://www.dailywire.com/topic/department-of-government-efficiency-doge" target="_blank" rel="noopener">Department of Government Efficiency (DOGE)</a>, and Trump condemned the legislation. Emboldened by their opposition, many Republicans said they would not vote for the CR, signaling that it would not be able to pass without bipartisan support in the House. Amid the firestorm, the House leaders began work on a Plan B.
In a joint <a href="https://x.com/JDVance/status/1869495076604227726" target="_blank" rel="noopener">statement</a> with Sen. JD Vance (R-OH), the vice president-elect, Trump said Congress should pass a temporary funding bill only if it includes a debt ceiling increase and no &#8220;DEMOCRAT GIVEAWAYS.&#8221; On Wednesday night, after leaving House Speaker Mike Johnson&#8217;s (R-LA) office, Vance <a href="https://x.com/cristina_corujo/status/1869509292778463694" target="_blank" rel="noopener">told reporters</a> they had a <a href="https://x.com/AnnieGrayerCNN/status/1869575481072533661" target="_blank" rel="noopener">&#8220;productive conversation&#8221;</a> and noted that Trump supports &#8220;a clean CR so long as it contains a debt limit increase.&#8221;
Congress last passed <a href="https://www.dailywire.com/news/senate-passes-debt-ceiling-bill-to-avert-default-ahead-of-x-date" target="_blank" rel="noopener">legislation</a> to address the debt ceiling in the late spring of 2023. That measure, negotiated under then-Speaker Kevin McCarthy (R-CA), suspended the debt limit until January 2025, staving off a U.S. debt default, and sought to implement various restraints on spending that would be able to reduce budget deficits by an estimated $1.5 trillion over the next decade.
On Thursday, POLITICO <a href="https://www.politico.com/live-updates/2024/12/19/congress/johnson-trump-discuss-new-stopgap-plan-00195312" target="_blank" rel="noopener">cited</a> GOP sources who said that Johnson and Trump&#8217;s team were discussing a new plan to avert a shutdown, including a CR, disaster aid, pushing off the debt limit fight for two years, and a one-year farm bill extension. Democrat leaders have <a href="https://x.com/bresreports/status/1869542348650344750" target="_blank" rel="noopener">reportedly</a> indicated they <a href="https://x.com/thehill/status/1869786286560542948" target="_blank" rel="noopener">prefer</a> the original plan.

Where The Spending Fight In Congress Stands After ‘Cramnibus’ Implodes

President <a href="https://www.dailywire.com/topic/joe-biden" target="_blank" rel="noopener">Joe Biden</a> signed a bill into law on Saturday to avoid a default on the federal government’s debt by raising the <a href="https://www.dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a>.
The bill, known as the Fiscal Responsibility Act, <a href="https://www.dailywire.com/news/senate-passes-debt-ceiling-bill-to-avert-default-ahead-of-x-date" target="_blank" rel="noopener">will suspend</a> the debt limit until January 2025 and implement restraints on spending that the Congressional Budget Office estimated would reduce budget deficits by $1.5 trillion over the next decade. 
“I just signed into law a bipartisan budget agreement that prevents a first-ever default while reducing the deficit, safeguarding Social Security, Medicare, and Medicaid, and fulfilling our [sacred] obligation to our veterans,” Biden said on Twitter. “Now, we continue the work of building the strongest economy in the world.”
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I just signed into law a bipartisan budget agreement that prevents a first-ever default while reducing the deficit, safeguarding Social Security, Medicare, and Medicaid, and fulfilling our scared obligation to our veterans.   Now, we continue the work of building the strongest… <a href="https://t.co/42HIFBy8Y9">pic.twitter.com/42HIFBy8Y9</a>
&mdash; President Biden (@POTUS) <a href="https://twitter.com/POTUS/status/1665060615000322050?ref_src=twsrc%5Etfw">June 3, 2023</a></blockquote>
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The bill was hashed out through a deal between House Speaker <a href="https://www.dailywire.com/topic/kevin-mccarthy" target="_blank" rel="noopener">Kevin McCarthy</a> (R-CA) and Biden. It passed both the House and the Senate with more Democrat votes in favor than Republican, with some conservative lawmakers saying that it didn’t cut down on spending enough. 
In the House, 149 Republicans joined 165 Democrats in <a href="https://www.dailywire.com/news/house-passes-mccarthy-biden-debt-ceiling-compromise-bill" target="_blank" rel="noopener">voting for</a> the bill, while in the Senate 17 Republicans joined 46 Democrats in supporting the measure. 
The bill was supported by leadership in both parties, including Senate Majority Leader Chuck Schumer and McCarthy in the House. 
“We prevented a catastrophic default that would have decimated our economy and [inflicted] immense pain on families,” Schumer <a href="https://twitter.com/SenSchumer/status/1664470685224140801" target="_blank" rel="noopener">tweeted</a>. “We preserved the lion’s share of the historic investments we made. We took off the table the worst parts of the MAGA Republican plan that would have hurt families.”
The bill was <a href="https://www.dailywire.com/news/a-disaster-republican-senators-voice-opposition-to-mccarthy-biden-debt-ceiling-deal" target="_blank" rel="noopener">strongly opposed</a> by many Republican senators, including Sen. Mike Lee (R-UT) and Sen. Rand Paul (R-KY). 
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“I think the Biden-McCarthy debt deal is a disaster for the country. It does not significantly change the trajectory of the debt. Each year we’ll spend more money and the debt will grow $4 trillion in two years. It’s not very conservative,” Paul <a href="https://www.kktv.com/video/2023/05/31/sen-rand-paul-reacts-deal-debt-ceiling/">told</a> reporters this week.
In the House, the bill was opposed by many in the House Freedom Caucus, who took issue with many aspects of the deal, including the provision that punts the debt ceiling into 2025. 
McCarthy declared the deal a win for conservatives. “Maybe it doesn’t do everything for everyone, but this is a step in the right direction that no one thought that we would be able to today,” <a href="https://www.dailywire.com/news/speaker-kevin-mccarthy-touts-wins-conservatives-secured-in-tentative-debt-ceiling-agreement" target="_blank" rel="noopener">McCarthy said</a>. “I’ll debate this bill with anybody. Is it everything I wanted? No, because we don’t control all of it. But it is the biggest rescission in history. It is the biggest cut Congress has ever voted for in that process.”

President Biden Addresses The Nation On Averting Default And The Bipartisan Budget Agreement

Biden Signs Bill To Increase Debt Ceiling, Avoid Federal Default

Freedom Caucus

Joe Biden

Kevin McCarthy

The Senate passed bipartisan legislation Thursday night that aims to avert a U.S. <a href="https://www.dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt default</a>.
After a series of amendments failed, the upper chamber voted 63-36 to send <a href="https://rules.house.gov/bill/118/hr-fiscal-responsibility-act" target="_blank" rel="noopener">The Fiscal Responsibility Act</a> to the White House where President Joe Biden is expected to sign the bill. Senate leaders quickly lauded the bill&#8217;s passage while taking shots at each other&#8217;s party.
&#8220;We prevented a catastrophic default that would have decimated our economy and [inflicted] immense pain on families,&#8221; <a href="https://twitter.com/SenSchumer/status/1664470685224140801" target="_blank" rel="noopener">tweeted</a> Senate Majority Leader Chuck Schumer (D-NY). &#8220;We preserved the lion’s share of the historic investments we made. We took off the table the worst parts of the MAGA Republican plan that would have hurt families.&#8221;
Senate Minority Leader Mitch McConnell (R-KY) released a <a href="https://www.republicanleader.senate.gov/newsroom/press-releases/senate-passes-bipartisan-debt-limit-agreement-" target="_blank" rel="noopener">statement</a> that said: “Thanks to House Republicans’ efforts, the Fiscal Responsibility Act avoids the catastrophic consequences of default and begins to curb Washington Democrats’ addiction to reckless spending that grows our nation’s debt.&#8221;
The legislation, which arose out of an agreement struck between White House officials and Speaker <a href="https://www.dailywire.com/topic/kevin-mccarthy" target="_blank" rel="noopener">Kevin McCarthy</a> (R-CA), comes ahead of what has become known as the &#8220;X-date&#8221; on June 5, when Treasury Secretary Janet Yelen predicted reserves could run out.
The Treasury Department has been enacting “extraordinary measures” since earlier this year when the United States hit its statutory limit of roughly $31.4 trillion and warned of dire economic consequences if the country was unable to reach a deal to lift the debt ceiling.
The legislation <a href="https://www.nytimes.com/2023/05/29/business/debt-ceiling-agreement.html" target="_blank" rel="noopener">suspends the debt limit until January 2025</a> and implements restraints on spending that the Congressional Budget Office estimated would <a href="https://www.cbo.gov/system/files/2023-05/hr3746_Letter_McCarthy.pdf" target="_blank" rel="noopener">reduce budget deficits</a> by $1.5 trillion over the next decade. As noted by McConnell in his statement, the bill also begins &#8220;to reform the infrastructure permitting process, finally rescind unspent COVID dollars, and cut spending at the IRS.&#8221;
While the bill did receive a bipartisan consensus, as underscored by a <a href="https://www.dailywire.com/news/house-passes-mccarthy-biden-debt-ceiling-compromise-bill" target="_blank" rel="noopener">vote in the House on Wednesday</a> with more than 100 Republicans and Democrats each supporting the measure, there were detractors in both parties.
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Conservatives generally argued that the bill did not go far enough in reducing spending while leftist lawmakers pushed back on certain provisions, such as the <a href="https://thehill.com/homenews/house/4028920-progressives-vent-frustration-as-debt-limit-bill-nears-final-vote/" target="_blank" rel="noopener">expansion of some requirements for food stamps</a>.
&#8220;No one gets everything they want in a negotiation, but make no mistake: this bipartisan agreement is a big win for our economy and the American people,&#8221; Biden said in a statement Thursday evening.
The president said he looks forward to signing the bill into law &#8220;as soon as possible&#8221; and addressing the American people on Friday.

Chuck Schumer

Senate Passes Debt Ceiling Bill To Avert Default Ahead Of ‘X-Date’

Senate Passes Debt Ceiling Bill To Avert Default Ahead Of 'X-Date'

Mitch McConnell

Senate

This week, Speaker of the House Kevin McCarthy (R-CA) and President Joe Biden cut a deal to raise the debt limit. The breakthrough came after three months of Biden pledging not to even negotiate over the debt limit. Instead, Biden was forced to concede to a 1% cap on increases for non-military spending, a cutback on IRS funding, a clawback of some unspent COVID allocations, and the addition of work requirements for some federal aid. The compromise deal was indeed far less than House Republicans had demanded, as Rep. Nancy Mace (R-SC) tweeted, “After factoring in a small cut to discretionary spending over the next 2 yrs, we are still talking about ~$6T more or less in spending bc of large increases in spending elsewhere….Govt grew massively over the past 3 years. This growth was supposed to be emergency funding only during COVID. During this time, govt grew 40% or by $2 trillion from 2019 to 2023. We went from spending just over $4T to spending just over $6T.”
Every word of that critique is true. Compared to conservative ideals, the compromise bill is indeed a flaming bag of fiscal manure. But conservative ideals weren’t on the table. Biden is the president. Sen. Chuck Schumer (D-NY) — thanks in large part to the tender 2020 ministrations of President Trump in the Georgia Senate runoffs and his further interference in the 2022 Senate races in Georgia, Arizona, New Hampshire, and Pennsylvania — is still the Senate majority leader. This means that Republicans were never going to get a big win on budgetary matters.
For that matter, Republicans couldn’t even get a big win on budgetary matters from 2016 to 2018, when they controlled both houses of Congress and Trump was actually president. In fact, Trump campaigned in 2016 against changes to entitlement programs, which represent the biggest driver of our national spending addiction — some 62% of federal spending annually. Combine that spending with 10% of our spending on net interest and another 13% or so on defense spending, and the discretionary outlays at issue represent under $1 trillion. That’s a lot of money, to be sure, but making serious cuts to that number would still put our budget in the $5 trillion range.
The reality is that our budgetary debates are generally about shifting deck chairs on the fiscal Titanic. By 2053, we will be dedicating in excess of 21% of our national budget to debt service alone. Mandatory spending will constitute 58% of our spending. We aren’t going to cut our way out of this problem by targeting discretionary spending in the main.
But nobody will touch the real drivers of our budgetary bloat and economic stagnation — Social Security, Medicare, and Medicaid. To do so would risk the wrath of entrenched interests in the United States. So instead, we’ll simply increase the size and scope of federal spending, placing an unsustainable burden on our economy, then eventually mandating vastly increased taxes or serious austerity measures. There is no third path forward.
Our politicians know this. But they’re in the business of kicking cans down the road while posturing over the placement of the deck chairs. The iceberg looms, but their re-election efforts rely almost completely on ignoring its presence as we bear down, full speed, on our fiscal doom.

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Readers Pass

The U.S. House of Representatives passed the debt ceiling compromise <a href="https://docs.house.gov/billsthisweek/20230529/BILLS-118hrPIH-fiscalresponsibility.pdf" target="_blank" rel="noopener">bill</a> on Wednesday that suspends the $31 trillion debt limit until a lame-duck session after the 2024 presidential election.
After an hour of debate, lawmakers advanced House Speaker Kevin McCarthy&#8217;s (R-CA) Fiscal Responsibility Act, a debt ceiling deal made with President Joe Biden that caused 71 Republicans and 46 Democrats to oppose the legislation. The final vote was 314 to 117 — 149 Republicans joining 165 Democrats.
&#8220;We&#8217;re finally bending the curve on discretionary spending because of this bill, and we&#8217;re doing it while at the same time raising our national defense and our veterans fully funded, with Social Security and Medicare preserved,&#8221; McCarthy said in a speech on the House floor, adding, &#8220;That is a major victory.&#8221;
After weeks of negotiations, Biden and McCarthy reached an &#8220;agreement in principle&#8221; over Memorial weekend.
Biden said the passage is a &#8220;critical step forward&#8221; to prevent a first-ever national economic default while touting the agreement&#8217;s Social Security, Medicare, and Medicaid protections.
&#8220;Tonight, the House took a critical step forward to prevent a first-ever default and protect our country&#8217;s hard-earned and historic economic recovery,&#8221; Biden said, according to <a href="https://www.nbcnews.com/politics/congress/live-blog/debt-ceiling-vote-live-updates-house-will-take-biden-mccarthy-plan-ton-rcna86870" target="_blank" rel="noopener">NBC News</a>. &#8220;This budget agreement is a bipartisan compromise. Neither side got everything it wanted. That&#8217;s the responsibility of governing.&#8221;
&#8220;It protects critical programs that millions of hardworking families, students, and veterans count on,&#8221; Biden said. &#8220;I have been clear that the only path forward is a bipartisan compromise that can earn the support of both parties. This agreement meets that test.&#8221;
Leading the GOP charge against the compromise, which would suspend the debt limit until January 2025 in exchange for various restraints on spending, was the conservative House Freedom Caucus, which views the agreement as being too watered down and weak on spending cuts.
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&#8220;No one sent us here to borrow an additional $4 trillion to get absolutely nothing in return,&#8221; Rep. Chip Roy (R-TX) <a href="https://www.nytimes.com/2023/05/31/us/politics/debt-ceiling-house-vote.html" target="_blank" rel="noopener">reportedly</a> said.
The Congressional Budget Office <a href="https://abc7.com/debt-ceiling-vote-house-rules-committee-time/13323085/#:~:text=The%2099%2Dpage%20bill%20would,default%20while%20limiting%20government%20spending.&amp;text=The%20House%20voted%20to%20pass,in%20averting%20a%20potential%20default." target="_blank" rel="noopener">reportedly</a> said the debt would reduce by $1.5 trillion over the decade under the spending restrictions.
The bill now heads to the Senate, the members of which expect to take some immediate procedural steps. Biden has urged lawmakers to pass the bill before the U.S. defaults on its debt on June 5.

The House Debates Debt Limit Legislation As Default Draws Near

House Passes McCarthy-Biden Debt Ceiling Compromise Bill

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