As per your politics, debt ceiling plan is good or a ‘disaster’

The assessments are starting to roll in as details emerge about the debt ceiling agreement reached by President Joe Biden and House Speaker Kevin McCarthy.

Even before seeing those details, some politicians criticized the deal for not doing enough to address the national debt, while others feared it is too austere and will hurt many low-income Americans.

The legislation will likely need the support of a significant number of politicians from both parties to clear the deeply divided House and gain the 60 votes needed to pass in the Senate.

Many lawmakers said they were withholding judgment until they saw the final details, many of which did not come out until Sunday evening. Then the 99-page bill that resulted from the Biden-McCarthy negotiations was made public.

A look at how the deal is going so far:

Early concerns

Some of the initial objections come from the most conservative members of Congress, particularly members of the hardline House Freedom Caucus, which often clashes with GOP leadership.

“I think it’s a disaster!” tweeted Matt Rosendale, Republican from Montana.

“Fake conservatives agree to fake cuts,” Sen. Rand Paul, a Kentucky Republican, tweeted.

“This ‘deal’ is madness,” Rep. tweeted. Ralph Norman, Republican from South Carolina. “A $4T debt ceiling increase without spending cuts is not what we agreed on. I’m not going to vote to bankrupt our country. The American people deserve better.”

GOP leaders knew all along that they would lose the support of some members in any compromise with a Democrat-led White House and Senate. The question has always been whether the deal would garner enough Democratic support to offset that defection.

Democrats weigh in

While some Democrats resent what is broadly a cut to non-defense programs next year and are demanding workplace aggravations be expanded to more food stamp recipients, initial reaction has been cautious awaiting more details.

Representative Annie Kuster, a New Hampshire Democrat and president of a center-left group known as the New Dems, which has about 100 members, said the group is “convinced” that White House negotiators will find a “viable, have found a bipartisan solution to end this crisis.”

Senator Chris Coons, a Democrat from Delaware, said he believed this was the best deal that could be reached given the demands of Republicans in the House.

“To my colleagues who have serious doubts about this deal, I say this is much better than defaulting,” Coons said.

The most likely opposition will come from the more liberal members of the caucus. Representative Pramila Jayapal, a Washington state Democrat, has opposed additional work requirements for some receiving food and monetary assistance. She called it terrible policy on CNN’s “State of the Union” on Sunday.

But she said she also awaits legislative text to determine the level of work requirement waivers that Biden has been able to win for veterans, the homeless and those coming from foster care.

“And what the numbers look like at the end of the day, I’m not sure,” said Jayapal, president of the Congressional Progressive Caucus. But it’s bad policy. I told the president directly when he called me on Wednesday last week that he tells poor people and people in need that we don’t trust them.”

Asked if Democrats in the White House and in the congressional leadership should be concerned about whether the Progressive caucus will support the bill, Jayapal said, “Yes, they should be concerned.”

A provision that speeds approval of the Mountain Valley Pipeline, a natural gas pipeline in West Virginia and Virginia, also adds to the consternation many Democrats will have over the bill. They had managed to keep it out of previous bills, but West Virginia Democrat Senator Joe Manchin and other members of the West Virginia delegation prevailed to include it in the debt limit bill. Environmental groups strongly criticized its inclusion on Sunday night.

Support from the corporate group

With the country about a week away from the risk of bankruptcy that could rock the US and the global economy, major business groups have urged Washington to act quickly on a raise in the debt ceiling.

The Business Roundtable, a group of more than 200 chief executive officers, called on Congress to pass the bill as soon as possible.

“In addition to raising the debt ceiling, this agreement takes steps to put the US on a more sustainable fiscal trajectory,” said group CEO Joshua Bolten. “This deal is also a down payment for allowing reforms, paving the way for new energy infrastructure projects.”

The U.S. Chamber of Commerce also pushed for a yes vote, noting that the vote will be included when the group reviews or “scorecards” members of Congress based on how they vote on business priorities.

Economists have made it clear that the economy would be turned upside down even if the country were unable to pay its bills in full in the near term, as interest rates would rise and financial markets would swoon.

“The gravity of this moment cannot be overemphasized,” said Suzanne Clark, president and CEO of the business group.

Watchdog groups approve

Some advocacy groups have long warned of Congress’ tendency to set policy priorities without paying in full for them. Their concerns are generally ignored. However, some see the agreement as a step in the right direction.

The Committee on a Responsible Federal Budget noted that if passed, the legislation would be the first major budget deal in nearly 12 years.

“The process was tense, risky and ugly, but at the end of the day we have a plan to make cuts and lift the debt ceiling, which is what is needed,” said Maya MacGuineas, the group’s president.