(C) Common Dreams
This story was originally published by Common Dreams and is unaltered.
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GOP turned down White House offer to freeze spending [1]
['Andrew Solender', 'Https', 'Www.Axios.Com Authors Asolender']
Date: 2023-05-21
House Republican negotiators declined an offer from the White House to freeze government spending in the 2024 budget as part of a deal to raise the debt ceiling, Axios has learned.
Why it matters: The development underscores how far apart the two sides are on the fundamentals of a deal.
The Friday offer, first reported by the Washington Post on Saturday, would keep 2024 defense and non-defense discretionary spending at 2023 levels, two sources familiar with the matter tell Axios.
That would amount to a 5% cut when adjusted for inflation – a step back from the Biden administration budget request in March, which proposed increasing discretionary spending.
But House Speaker Kevin McCarthy (R-Calif.) is holding out for a decrease in non-defense spending. The debt ceiling bill House Republicans passed in April would cap spending at 2022 levels.
What they're saying: White House Press Secretary Karine Jean-Pierre, in a statement on Saturday evening, said McCarthy's team made an offer a day earlier that was "a big step back and contained a set of extreme partisan demands that could never pass" both the House and Senate.
"The President’s team is ready to meet any time. And, let’s be serious about what can pass in a bipartisan manner, get to the President’s desk and reduce the deficit," she said.
The other side: A House Republican source cited the more than $400 billion increase in discretionary spending over the last decade, compounded by trillions more in pandemic-era stimulus spending, as reasons to decrease spending.
Republicans also want to increase funding for defense, which would be frozen under the White House's proposal along with non-defense spending.
“It was a bad day for negotiations," said Rep. Dusty Johnson (R-S.D.), telling Axios that a "lack of seriousness" from the White House "undermined the progress that we had made on Wednesday and Thursday."
The state of play: Treasury Secretary Janet Yellen has warned that the U.S. could stop being able to pay its debts as early as June 1.
What's next: The two sides are trying to coordinate a direct call between McCarthy and President Biden.
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[1] Url:
https://www.axios.com/2023/05/21/gop-white-house-budget-debt-ceiling
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