GOP-led House passes bill to hike debt limit and slash spending

WASHINGTON — The Republican-controlled House voted Wednesday to pass a bill to raise the debt limit, slash spending and roll back key pieces of President Joe Biden’s agenda after a series of concessions overnight to win over stubborn GOP holdouts.

The GOP debt package is dead on arrival in the Democratic-led Senate, and Biden has also issued a veto threat, saying Congress should hike the debt ceiling with no strings attached.

But passage of the bill on a 217-215 vote hands Speaker Kevin McCarthy, R-Calif., a small and much-needed symbolic victory, underscoring his ability to bring together his razor-thin, often rambunctious majority. Republicans hope that uniting behind the debt ceiling plan will pressure Biden and the Democrats to start negotiating just two months before a potential default on the nation’s debt.

“One party has taken care of the debt ceiling. We have lifted the debt ceiling. … The Democrats have not,” McCarthy told reporters after the vote. “The president wants to make sure the debt ceiling is going to be lifted — sign this bill.”

Rules Committee Chairman Tom Cole, R-Okla., a senior appropriator and McCarthy ally, acknowledged the work ahead on the debt ceiling but praised McCarthy. “It’s not the end of the road, but it’s a great personal and political victory for the speaker who got it done. He got a lot of people to vote for a debt ceiling increase who’ve never done that before,” he said.

“And it also puts pressure on the Senate to come to the negotiating table. They can’t pass a clean debt ceiling," Cole added, referring to Democrats' demand that legislation to raise the debt limit be free of any other policy riders. "They know that — and it brings the president to it.”

McCarthy faced early skepticism from members in swing districts, as well as holdouts representing the Midwest who were worried about a reduction in ethanol funding and conservatives who wanted changes like tougher work requirements for safety-net programs.

But over 24 hours starting Tuesday, McCarthy and his leadership team worked frantically to address their concerns, rewrite some provisions and flip a handful of “no” votes that threatened to tank the bill.

The tweaks won over a small bloc of Corn Belt Republicans from Iowa and other states who worried the GOP package could repeal ethanol tax credits, including those in the Democrats’ Inflation Reduction Act, that benefited their constituents.

“In the spirit of Caitlin Clark, we’re going to fight, fight, fight for Iowa, and we came out ahead on this. ... The delegation from Iowa held strong together,” said freshman Rep. Zach Nunn, one of the Iowa Republicans who met with McCarthy on Tuesday.