GOP-led House passes bill to extend debt limit by 1 year and reduce domestic spending

The GOP-led House passed the Limit, Save, Grow Act of 2023 on Wednesday evening to increase the debt limit for one year by $1.5 trillion and reduce the growth of domestic spending.

The bill passed 217-215 with four Republicans voting against it.

House Speaker Kevin McCarthy had told reporters earlier on Capitol Hill that the vote would take place in the evening but he didn't say if there were enough votes to pass it at the time.

In addition to extending the nation's debt limit, the bill would limit domestic spending growth by 1% per year. It also eliminates many of the green energy tax credits in the Democrats' Inflation Reduction Act. The bill would also block President Biden's student debt forgiveness plan from implementation, which he announced through an executive order last year.

“House Republicans just delivered a plan that will address the country’s debt crisis. Our conference came together to pass the only plan in Washington that will tackle the debt ceiling, stop excessive federal spending and inflation, and put our country back on track for sustained economic growth,” McCarthy said after the vote.

Democrats objected to the legislation, expressing opposition to the federal spending reductions in the bill and arguing that it doesn't extend the debt limit long enough.

The House Rules Committee had made several changes to the bill overnight following negotiations between McCarthy, House Republican Whip Tom Emmer and a group of conservative GOP lawmakers.

The modifications were related to work requirements for recipients of federal benefits such as Supplemental Nutrition Assistance Program (SNAP) and Medicaid, according to the text of the amendments.  Tax incentives for alternative fuels like biodiesel were retained as opposed to repealed in the original version.

The White House formally announced on Tuesday that Biden would veto the legislation if it arrived at his desk.