Spending Cuts

The House Freedom Caucus has threatened to file a motion to vacate and remove Kevin McCarthy (R-CA) as Speaker if he keeps the debt deal.

Members of the House Freedom Caucus on Friday outlined the conditions necessary to attain their vote for a raise on the national debt limit, including setting a cap on discretionary spending for 10 years, stopping President Joe Biden's student loan forgiveness plan, and pulling back the $80 billion approved late last year to expand the Internal Revenue Service.

Some individuals can expect a Medicare tax increase under the new budget proposal scheduled to be unveiled this week by the Biden administration.

Sen. Joe Manchin (D-WV) called on his Republican and Democratic colleagues on Thursday to implement a compromise that would decrease the national debt.

This week the US government reached its 31.4 trillion dollars borrowing limit, better known as the “debt ceiling.”

Treasury Secretary Janet Yellen asserted on Saturday that House Republicans attempting to negotiate spending cuts amid the renewed debt ceiling battle are “very irresponsible.”

The U.S. government bumped up against its debt limit Thursday, prompting the Treasury Department to take “extraordinary” accounting steps to avoid default — as friction between President Joe Biden and House Republicans raised concern about whether the U.S. can sidestep an economic crisis.

On Friday, Treasury Secretary Janet Yellen wrote a letter to congressional leaders warning that the U.S. would hit its debt limit on January 19 and encouraged Congress to "act promptly to protect the full faith and credit of the United States," CNBC reported.

"Our system is built on checks and balances. It's time for us to be a check and provide some balance to the president's policies," McCarthy said.

President Joe Biden on Friday acknowledged that polls were swinging toward Republicans and issued a last-minute economic warning to Americans if they took power.