Republican Unity Forced Democrats To Agree To Cut Government Spending

The Agreement Negotiated By Speaker McCarthy Will Cut Non-defense Spending And Would Save $1.5 Trillion Over A Decade, All Without Any Tax Increases

SENATE REPUBLICAN LEADER MITCH McCONNELL (R-KY): “House Republicans stood united behind Speaker McCarthy. They lined up behind the only legislation that addressed the debt limit and out-of-control government deficits. They committed to the direct negotiations that I said repeatedly were the only way to avoid default. And they secured an outcome that confronts Washington Democrats’ reckless spending in a serious way. Republicans stood united. They forced President Biden to do his job. And they reached an agreement that preserves the full faith and credit of the United States and starts getting its financial house in order…. here’s the bottom line: The Senate will have an opportunity very soon to pass legislation that reduces federal government spending by $1.5 trillion dollars over the next decade. That’s $1.5 trillion dollars that won’t be put on the American taxpayer’s tab. It’s a down payment on more progress that’s yet to come. House Republicans’ unity gave them the upper hand. And they used it to secure a much-needed step in the right direction. When this agreement reaches the Senate, I’ll be proud to support it without delay.” (Sen. McConnell, Remarks, 5/31/2023)

SENATE REPUBLICAN WHIP JOHN THUNE (R-SD): “I am tremendously grateful to Speaker McCarthy, and to House Republicans, for their tireless work to make sure that any legislation to raise the debt ceiling was paired with meaningful spending reforms. The Fiscal Responsibility Act cuts discretionary spending next year and then limits discretionary spending increases to 1 percent each year over the subsequent five years…. They’ve achieved an important victory. And I hope that the Fiscal Responsibility Act will be just the first step in a larger campaign to get our nation’s fiscal house in order and ensure a better economic future for the American people.” (Sen. Thune, Remarks, 5/31/2023)

SEN. THUNE: “Let’s not forget that Democrats wanted to pass a debt ceiling increase without any spending reforms at all. This bill may not be perfect, but it makes a real start at getting spending under control.” (Sen. Thune, Remarks, 5/31/2023)

HOUSE MAJORITY LEADER STEVE SCALISE (R-LA): “You see inflation through the roof. You see the struggles that hardworking families are experiencing because Washington went on a multi-trillion dollar spending binge over the last two years. And [President] Biden didn’t want that spending binge to end, but the American people had a different idea when they elected a House Republican majority committed to finally getting spending under control in Washington, and that’s what this bill is about…. [T]here are a lot of really important reforms that are in this package, something that I think everybody has been waiting a long time to see from Washington. Not how much more is Washington going to spend but, for once in a long, long time, Washington is actually going to spend less money next year than it is this year, and that’s a reform that all of us can support.” (Rep. Scalise, Press Conference, 5/30/2023)

CBO Projects The Bipartisan Debt Limit Agreement Would Save $1.5 Trillion Over The Next Ten Years

CBO: “In CBO’s estimation, if H.R. 3746 was enacted and appropriations that are subject to caps on discretionary funding for 2024 and 2025 were constrained by the limits specified in section 101(a) of the bill, the agency’s projections of budget deficits would be reduced by about $1.5 trillion over the 2023–2033 period … As a consequence, interest on the public debt would decline by $188 billion.” (Congressional Budget Office, “CBO’s Estimate of the Budgetary Effects of H.R. 3746, the Fiscal Responsibility Act of 2023,” Letter to Speaker McCarthy, 5/30/2023)

“The Congressional Budget Office (CBO) on Tuesday said the debt ceiling deal negotiated by the White House and House GOP leaders could reduce projected deficits by about $1.5 trillion over the next decade. The nonpartisan budget scorekeeper estimated in a letter to congressional leaders Tuesday that proposed spending limits for 2024 and 2025 would trim nearly $1.5 trillion from projected federal budget deficits from 2023 to 2033.” (“CBO Finds Biden-McCarthy Debt Limit Deal Could Reduce Spending By $1.5T Over Decade,” The Hill, 5/30/2023)

‘In A Concession To Republicans,’ ‘The Bill Would Cut Spending On Domestic Priorities Favored By Democrats’

NEW YORK POST EDITORIAL BOARD: “The key is that [this legislation] advances the GOP’s control-spending agenda significantly, on multiple fronts. Most crucially, it starts reducing federal outlays immediately, rolling back most domestic non-entitlement outlays to the prior year’s levels — that is, it cuts some spending rammed through when Democrats still ran the House.” (Editorial, “Kevin McCarthy’s Debt-Limit Deal Is A Win For Republicans & The Nation,” New York Post, 5/29/2023)

“The bill would cut spending on domestic priorities favored by Democrats in fiscal 2024, while boosting military spending by about 3%. It then sets a 1% cap on spending increases for the 2025 fiscal year.” (“Debt-Ceiling Deal Faces Vote in House,” The Wall Street Journal, 5/31/2023)

“In a concession to Republicans, the bill would limit domestic spending for two years and impose some new work requirements for certain individuals receiving food stamps and those in the Temporary Assistance for Needy Families program.” (The Washington Post, 5/30/2023)

And The Agreement Will Increase Defense Spending

SEN. THUNE: “And it’s worth noting that this is the first time in recent history we have increased defense spending while decreasing nondefense spending.” (Sen. Thune, Remarks, 5/31/2023)

“The proposed military spending budget would increase to $886 billion next year, which is in line with what Mr. Biden requested in his 2024 budget proposal, and rise to $895 billion in 2025.” (“New Details in Debt Limit Deal: Where $136 Billion in Cuts Will Come From,” The New York Times, 5/29/2023)

‘Perhaps Just As Important As What’s In The Bill Is What’s Not In The Bill: Tax Increases’

“There are no new tax increases in the deal, which Mr. Biden had suggested, and Republicans rejected.” (“What’s In The Debt Ceiling Deal — And What’s Not,” CBS News, 5/30/2023)

“The White House recently gave Republican congressional leadership a list of proposals to reduce the deficit by closing tax loopholes during the ongoing negotiations over the federal budget and the debt ceiling. But Republican negotiators rejected every item …” (“GOP Rejected White House Effort To Close Tax Loopholes In Debt Ceiling Talks,” The Washington Post, 5/15/2023)

SEN. THUNE: “Perhaps just as important as what’s in the bill is what’s not in the bill: tax increases. Speaker McCarthy and House Republicans held the line and ensured that the debt ceiling increase was not used as a vehicle to collect more taxpayer money.” (Sen. Thune, Remarks, 5/31/2023)

HOUSE SPEAKER KEVIN McCARTHY (R-CA): “We rejected White House demands for $5 trillion in new taxes and instead eliminated funding that would be wasted this year to hire Mr. Biden’s new army of Internal Revenue Service agents. Washington has a spending problem—not a revenue problem—and government should exist to serve you, not go after you.” (House Speaker Kevin McCarthy, Op-Ed, “Wasteful Government Doesn’t Have to Keep Growing,” The Wall Street Journal, 5/28/2023)

MAJORITY LEADER SCALISE: “[President] Biden wanted more taxes in this package, and Speaker McCarthy insisted not a dime in new taxes would be in this bill …” (Rep. Scalise, Press Conference, 5/30/2023)

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SENATE REPUBLICAN COMMUNICATIONS CENTER

Related Issues: Appropriations, Debt And Deficits

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