If Republicans win control of the US House of Representatives in November's midterm elections, they hope to use a powerful and potentially dangerous tool in their dealings with Democratic President Joe Biden: the federal debt limit.
The US Treasury is expected to reach its mandated $31.4 trillion borrowing limit in 2023, and Republicans from hard-line conservatives to moderates see that as an opportunity to curb Biden's spending on Democratic initiatives such as climate change and new social programs.
Republicans To Curb Biden's Spending On Democratic Initiatives
Representative Scott Perry, chairman of the hard-line House Freedom Caucus, said, "It is important that we are prepared to use the leverage we have to control Republicans in the November 8 election as a nonpartisan election." Might see more impact when it comes." Forecasters say that is likely.
Debt Limit To Be Crucial To Republican's Hopes of Reining In Federal Spending
Representative Buddy Carter, a contender for chairman of the House Budget Committee, said the debt limit will be crucial to a new Republican majority's hopes of reining in federal spending.
"It's very difficult to get public attention about our debt. Debt limits are going to be an important tool," Carter told Reuters.
Congress created debt limits in 1917 to give the government greater borrowing flexibility, and each increase must be approved to ensure that the United States meets its debt obligations and avoids a catastrophic default. Is.
The system is, in theory, meant to control the increase in the country's debt, but has not been an effective tool in recent decades. Washington's debt has increased from $3.2 trillion in 1990 to $31.1 trillion today.
But the approach has set the stage for regular flashpoints, with Republicans regularly threatening to halt an increase in precise concessions.