McCarthy's Plan To Raise Debt Ceiling By $1.5 T Means Axing Biden's Student Loan Forgiveness Plan

House Speaker Kevin McCarthy on Wednesday reportedly unveiled a plan to raise the debt ceiling by $1.5 trillion and trim federal spending by three times that amount.

McCarthy’s proposal would reduce the total amount of domestic and military spending to 2022 levels and limit growth at 1% annually in years to come, reported Reuters. It would not, however, touch retirement and health programs that are expected to expand significantly as the population ages, the report said.

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McCarthy’s plan would also revoke green-energy incentives signed into law by President Joe Biden last year, increase domestic oil and gas production and scrap his $400 billion student-loan forgiveness effort, the report said.

Other things involve clawing back unspent COVID-19 relief money, canceling a recent budget rise for the Internal Revenue Service and imposing tougher work requirements for some benefit programs.

Congress would get greater power to block Biden administration regulations under the proposal as well.

McCarthy said the package would reduce spending by $4.5 trillion over the coming 10 years. “President Biden has a choice: Come to the table and stop playing partisan political games, or cover his ears, refuse to negotiate and risk bumbling his way into the first default in our nation’s history,” McCarthy said on the House floor, according to the report.

Biden's Stand: The U.S. President asserted his position that Congress should raise the $31.4 trillion debt limit without conditions, as it did three times under Donald Trump.

“Take default off the table, and let’s have a real serious, detailed conversation about how to grow the economy, lower costs and reduce the deficit,” Biden said at an appearance outside Washington, according to the report.

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