Americans Lose Out in Debt Limit Deal, Heritage President Says

Americans Lose Out in Debt Limit Deal, Heritage President Says

May 29, 2023 1 min read

WASHINGTON—Heritage Foundation President Dr. Kevin Roberts made the following statement on Monday, May 29, about the debt limit deal negotiated by President Joe Biden and House Speaker Kevin McCarthy.

“At a time when Americans are struggling to balance their budgets as the cost of gas, groceries, and childcare continue to rise, Republicans had a real chance to protect families and fight sky-high inflation and interest rates by cutting government spending.

“Republicans entered negotiations with a strong hand, having passed the Limit, Save, Grow Act in April. Their plan paired robust spending cuts and pro-growth policies with a modest debt limit increase—giving Americans back $4 for every dollar of increased federal debt. While President Biden demanded a blank check and refused to negotiate, House Republicans passed the only proposal to raise the debt ceiling in Congress. Sadly, that leverage was given away in closed-door negotiations.

“Most fiscally conservative and pro-growth policies contained in the House-passed Limit, Save, Grow Act were stripped out or diluted. When Americans last gave their representatives in Washington this much support to rein in the government in 2011, Congress signed into law the Budget Control Act, which cut discretionary spending roughly 15 times more than the deal in front of us today. The new agreement essentially leaves untouched Biden’s slush fund for 87,000 new IRS agents to audit American families. Additionally, this bill could lead to increased overall spending levels next year, potentially giving up on the $132 billion in real upfront cuts promised by Limit, Save, Grow. In exchange, this bill would give the Biden administration and the federal bureaucracy a blank-check debt limit suspension for two years.

“The agreement isn’t without victories, of course. Permitting reform will be a boon to allow businesses to build with less red tape. Work requirements will have a modest but real impact in preserving government programs for those who truly need them. But those victories are smaller and fewer in number than they should be.

“Overall, this agreement would continue America’s trajectory towards economic destruction and expanded federal control. House Republicans must go back to the negotiating table and demand more concessions from the Biden administration. Heritage stands with the everyday American and behind every member of Congress who is willing to fight for fundamental fiscal change in Washington.”

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