Senate Majority Leader Chuck Schumer (D-NY) reiterated his opposition to House Republicans’ debt-limit measure on Monday, accusing the GOP of putting the country in default and promising Senate hearings to “expose the true impact” of the proposal.
In a “Dear Colleague” letter, Schumer stated that the Senate will begin investigating the bill, which cleared the House this past week, in a Budget Committee meeting on Thursday.
“The legislation in question was hurriedly drafted and pushed through the House at breakneck speed,” Schumer wrote, claiming that it was not examined in a House committee as is customary.
“The Senate will be demonstrating to the general public what this measure truly is,” he went on to say. “Starting this week, our Committees are going to begin holding hearings to reveal the real effect of this irresponsible legislation on average Americans.”
The Limit, Save, and Grow Act, which Dems. have dubbed the “Default on America Act,” would increase the debt ceiling until the beginning of next year in return for significant expenditure cuts.
The plan would halt President Joe Biden’s student loan rescue, revoke recent IRS funding, remove climate-related provisions of the Inflation Reduction Act, increase job requirements for welfare users, and other provisions. According to the Congressional Budget Office, the changes would save the government $4.8 trillion over the following ten years.
Biden and Schumer want to lift the debt ceiling without putting any conditions on it.
The Treasury Department issued a warning of “economic catastrophe” if the US reaches its borrowing capacity, which could happen as soon as this summer if the House, Senate, and White House can not strike an agreement to suspend or increase the limit in time.
Biden has stated that they will not enter into negotiations with House Speaker Kevin McCarthy (R-CA) on the issue, while Schumer has stated that the House plan will die in the Senate, despite Schumer presenting no plausible alternative.
Schumer also cautioned his colleagues about the bill’s “real, dramatic effects” on Americans:
“Every year, the Department of Agriculture would gut Medicaid for more than twenty million Americans, eliminate SNAP benefits for more than one million of those receiving them, and cancel Pell grants for many thousands of American students.”
“The DOA would slash crucial funding for almost every sector of American life, resulting in less employment, greater expenses, and leaving police officers, border patrol, emergency responders, and our courageous veterans hanging.”
“If anything at all, the MAGA House Republicans’ efforts have raised the probability of default,” Schumer asserted. “If Speaker McCarthy was a true good-faith negotiator, he wouldn’t have allowed fanatics hold him hostage and divert this discussion.”
While many, which includes McCarthy, acknowledge that the Limit, Save, and Grow Act won’t become the final legislation that addresses the debt ceiling due to Schumer and Biden’s opposition, passage of the measure has increased pressure on Democratic leaders to negotiate with the speaker to reach an agreement.
A number of Dems. in the Senate as well as the House have started encouraging the two chambers along with Biden to begin negotiations, despite the House GOP effectively uniting around a plan.