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COVID-19 clawbacks, spending caps and a cut – what House Republicans got in return for pushing the US to the brink of default

Raymond Scheppach, Professor of Public Policy, University of Virginia, The Conversation on

Published in Political News

House Republicans pushed the U.S. to the edge of a fiscal crisis because they wanted deep cuts in government spending.

So, based on the tentative deal announced on May 27, 2023, how did they do?

In broad strokes, the deal would suspend the debt limit until January 2025, freeze nondefense discretionary funding at current levels and make a few additional cuts and policy changes designed to appeal to enough Republicans and Democrats to get it through Congress. The deal also included incentives to motivate lawmakers to pass a budget on time in four months.

That provision and the 2025 expiration date should mean the U.S. should avoid a self-inflicted fiscal crisis – including an unprecedented default – until at least after the next presidential election.

No one got everything they wanted. President Joe Biden didn’t get the clean debt ceiling increase he had insisted on for months. Republicans didn’t get most of what they sought in a bill they passed in April – though they did get some of it.

As a professor of public policy and former deputy director at the Congressional Budget Office, I believe the deal, which still needs to pass both houses of Congress by June 5 to avoid a default, does hardly anything to address America’s long-term debt problem, which to me shows why a debt ceiling standoff is not the right way to solve it.

 

Let’s take a closer look at what I would consider the five main components of the deal to see what they’ll accomplish.

The Supplemental Nutrition Assistance Program has been a Republican target for a while.

Under current law, an individual must work or be in training for 80 hours per month if they receive SNAP food benefits in three or more out of 36 months, is able-bodied, does not live with dependent children and is under 50 years old. This entitlement program is 100% funded by the federal government but is administered by states, which have the ability to waive the requirements in some low unemployment areas.

The new deal would expand the definition to people up to age 54 and limit some of the state waiver authority. It would exclude veterans and homeless people from the tougher work requirements and expire in 2030.

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