(Bloomberg) -- House Republicans will seek to raise the US debt limit by $1.5 trillion or until March 31, 2024, in exchange for spending cuts in a proposal they plan to put up for a vote next week, according to two lawmakers who have been briefed on the plan.
Speaker Kevin McCarthy has said he would release details Wednesday. It is unclear whether he has the necessary 218 votes to pass it next week.
Representative Barry Loudermilk noted the plan did not have all the spending cuts he would like to see, but said “we have to be realistic.”
Representative Tim Burchett said he isn’t ready to back this bill but may vote for it after seeing the text.
The speaker hopes that, if the House can pass the proposal, President Joe Biden will then engage in talks to resolve the ongoing stalemate over raising the $31.4 trillion debt limit. Without an increase or suspension of the ceiling, the US would default on payment obligations as soon as June — an event Treasury Secretary Janet Yellen has warned would cause economic and financial “collapse.”
When asked if he has a majority to pass the proposal, McCarthy would only say, “It will be good theater for you.”
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