House Republicans are gearing up to propose a plan to raise the federal debt ceiling and cut government spending when Congress returns this week. House Speaker

Kevin McCarthy will outline the criteria that Republicans want Democrats to agree to in exchange for action on the debt ceiling in a speech at the New York Stock Exchange on Monday. The proposal would need to be negotiated with Biden’s Democrats, who control the Senate, before it can become law.

Republicans have proposed holding annual spending growth to 1% for a decade, reducing regulation, and boosting energy production. However, members of McCarthy’s caucus have yet to agree on actual legislation. The White House, which is leading the Democrats’ approach to the debt ceiling, has dismissed the Republican proposals as unrealistic.

Nonpartisan forecasters have warned that the federal government could face a historic default this summer if Congress fails to act. The potential default could cripple the US and world economies and force a downgrade of the US credit rating. Biden has insisted that Congress pass a “clean” debt hike without conditions, noting that it did so three times under his predecessor, Republican Donald Trump.

“At this point, I think there’s no choice for Republicans and the speaker but to bring forward some type of proposal,” said Representative Tom Emmer, the No. 3 House Republican.

The proposed legislation, which conservatives hope to pass by the end of April, could lift the borrowing limit until May 2024, according to a source familiar with the matter. That would set the stage for another debt ceiling debate in the closing months of the 2024 presidential campaign.

However, Republicans must first agree on a proposal that can win the support of at least 218 of their 222 members. “Getting us all on the same page is a challenge. But it’s not impossible, and I’m optimistic that we’ll get there. This is an issue we’ve been talking about for some time,” said Republican Representative Ben Cline. Photo by Gage Skidmore from Surprise, AZ, United States of America, Wikimedia commons.