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Update: Debt Limit

Speaker McCarthy proposed a bill that would raise the U.S. debt limit and cut federal spending. The plan would increase the debt ceiling by $1.5 trillion, enough to suspend U.S. default payments until March 31, 2024; cap discretionary spending at the FY22 levels or a $130 billion cut and cap increases to a 1% annual rate for the following decade; rescind unspent Covid-19 funds; impose tougher work requirements for anti-poverty benefits; and ease regulations on energy projects.  Speaker McCarthy stated, “these cuts are not draconian, they are responsible. If Washington wants to spend more it will have to come together and find savings elsewhere just like every single household in America.”