Staff Reports
The Heritage Foundation asserts that Republicans squander a chance to reduce government spending and safeguard families in the new debt deal.
Heritage Foundation: Here Are the Real Losers in the Debt Ceiling Agreement https://t.co/dYVkLz02oZ
— Townhall.com (@townhallcom) May 30, 2023
The Heritage Foundation has criticized the most recent agreement between House Speaker Kevin McCarthy and President Joe Biden to raise the debt ceiling and prevent a default on U.S. debt. In a statement released by its president, Kevin Roberts, the Heritage Foundation criticized the new agreement for failing to protect families and reduce government spending at a time when Americans are struggling to meet rising costs for gasoline, groceries, and child care.
House Republicans must go back to the negotiating table and demand more concessions from the Biden administration.https://t.co/vsieJwWUxC
— Kevin Roberts (@KevinRobertsTX) May 30, 2023
Roberts asserted that the Republicans had a genuine opportunity to combat sky-high inflation and interest rates by slashing government spending, but failed to do so during the closed-door negotiations. In addition, he lauded the plan proposed by House Republicans in April, which combined substantial spending cuts and pro-growth policies with a modest increase in the debt ceiling, granting Americans $4 for every dollar of increased federal debt. In contrast, Biden demanded an unrestricted budget and refused to negotiate, leaving little opportunity for compromise.
The statement noted that the majority of fiscally conservative and pro-growth policies in the House-passed Limit, Save, Grow Act were eliminated or watered down, leaving Biden's reserve fund for 87,000 new IRS agents to audit American families untouched. In addition, the new agreement will likely result in an increase in overall spending levels next year, abandoning the $132 billion in real upfront cutbacks promised by the Limit, Save, Grow plan. Roberts warned that this would pave the way for a perpetuation of America's path toward economic devastation and increased federal control.
Although the final agreement contains some conservative "victories," such as allowing reform that reduces business red tape and introducing work requirements to preserve government programs for those in need, these are smaller and less numerous than they should be. Heritage Foundation urged House Republicans to return to the bargaining table and demand additional concessions from the Biden administration. With Treasury Secretary Janet Yellen's most recent projections predicting a default on June 5, there is little time left for either party to return to the negotiating table.
The Heritage Foundation has vowed to support each member of Congress who fights for fundamental fiscal reform in Washington. As of Tuesday morning, nine Republican lawmakers share the Heritage Foundation's reservations about the agreement. How House Republicans will respond to the criticism from the Heritage Foundation remains to be seen.
