Debt ceiling agreement gets thumbs up from biz groups, jeers from some on political right

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WASHINGTON (AP) — Revisions are beginning to emerge as details emerge about the debt ceiling agreement reached by President Joe Biden and House Speaker Kevin McCarthy.

Already, some lawmakers are criticizing the deal for not doing enough to address the state’s debt, while others worry that it is too austere and will hurt many low-income Americans.

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The legislation will likely need the support of a slew of lawmakers from both parties to clear the closely divided House of Representatives and gain the 60 votes needed to advance in the Senate.

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The final text of the agreement is expected Sunday. Many lawmakers say they are withholding judgment until they see the final details.

A look at how the agreement has gone so far:

Early concerns

Some of the early objections come from more conservative members of Congress, particularly members of the hardline House Freedom Caucus that often clashes with the GOP leadership.

“I think it’s a disaster!” tweeted Matt Rosendahl, R-Mont.

“Fake conservatives agree to fake spending cuts,” tweeted Senator Rand Paul, R-Ky.

Rep. Ralph Norman, RS.C., tweeted. “Increasing the debt ceiling by $4 trillion with virtually no cuts is not what we agreed to. We will not vote to bankrupt our country. The American people deserve better.”

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

Democrats weigh

As much as some Democrats dislike what is almost a freeze on spending on non-defense programs next year and the spillover of angry labor requirements to more food stamp recipients, the initial reaction has been cautious as they wait for more details.

Rep. Annie Koster, D-N.H. , and chairwoman of a center-left group known as the New Democrats, which has nearly 100 members, said they are “confident” that White House negotiators have presented a viable, bipartisan solution to end this misfortune.

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The most likely opposition will come from the more liberal members of the caucus. Rep. Pramila Jayapal, R-Washington, has voiced her vocal opposition to the extra work requirements for some of those receiving food and cash aid. She called it outrageous politics Sunday on CNN’s “State of the Union.”

But she said she was also waiting for legislative text to determine the level of exceptions to work requirements that Biden was able to win for veterans, homeless people and people out of foster homes.

“So what the numbers look like at the end of the day, I’m not sure. Still, it’s bad politics. I told the president directly when he called me last week on Wednesday that this is saying to the poor and needy that we don’t trust them,” said Jayapal, who serves as chair of the Progressive Caucus in Congress.

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Asked if Democrats in the White House and in the leadership should worry about whether the Progressive Caucus would support the bill, Jayapal said: “Yes, they should worry.”

Business Support Group

With the country nearly a week away from the threat of a default that could roil the global economy, major business groups are urging Washington to quickly increase the debt ceiling.

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

In addition to raising the debt ceiling, this agreement takes steps toward putting the United States on a more sustainable fiscal path. The group’s CEO, Joshua Bolten, said the deal also provides a down payment on permitting reform, which helps pave the way for new energy infrastructure projects.

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The American Chamber of Commerce also urged a yes vote and indicated that voting would be included when the group rates or “scorecards” for members of Congress based on how they vote on business priorities.

Economists were clear that even a short-term breach in the nation’s ability to pay its bills as interest rates soared and financial markets swooned would upset the economy.

“The gravity of this moment cannot be overstated,” said Susan Clark, President and CEO of the Business Group.

control groups

Some advocacy groups have long warned of Congress’ tendency to enact policy priorities without paying the full price for them. In general, their fears go unheeded. But some see the agreement as a step in the right direction.

The Committee for a Responsible Federal Budget noted that if the legislation passes, it will be the first major deficit-reducing budget agreement in nearly twelve years.

“The process has been tense, risky and ugly, but in the end, we have a plan to enact savings and raise the debt ceiling, and that’s what’s needed,” said Maya McGuinness, the group’s chair.