Debt Ceiling 2023: Democrats Call On Biden to Negotiate With GOP on Budget — What Could Cuts Mean For You?
Written by
Dawn Allcot
Edited by
Nicholas Morine
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
With the debt ceiling once again a subject of hot debate in Washington, Democrats are calling on President Joe Biden to negotiate with Speaker Kevin McCarthy and other Republicans to discuss federal budget cuts.
In an interview on CNN’s “State of the Union,” Senator Amy Klobuchar said, “He should negotiate on the budget. That is the place to negotiate, and they should start those negotiations now.” She suggested the budget negotiations be separate from debt ceiling votes.
But how will McCarthy’s proposed domestic budget cuts affect average middle class and lower-income Americans? CNN reported that McCarthy’s Limit, Save, Grow Act would:
- Block student loan forgiveness.
- Repeal green energy tax credits.
- Eliminate additional IRS funding.
The bill would reportedly save $4.5 trillion and potentially limit spending growth to 1% per year.
New SNAP Work Requirements
CNN reported that the bill would “beef up” work requirements for food stamp (SNAP) recipients. The requirements would apply only to childless, able-bodied adults ages 18 to 55. These individuals could collect SNAP benefits only for three months out of every 36 months unless they are employed at least 20 hours per week. McCarthy’s bill maintains the work requirements previously introduced, before the emergence of the COVID-19 pandemic precipitated the suspension of those requirements, and increases the age to 55 rather than 49.
Medicaid Work Requirements
Similarly, McCarthy’s proposal will require some Medicaid recipients ages 19 to 55 to work, perform community service, or participate in an employment program for at least 80 hours per month. These requirements might be waived if recipients meet certain monthly income requirements.
Will McCarthy’s Proposed Budget Pass?
Washington pundits believe “the plan has no chance of passing the Democratic-led Senate,” CNN reported. Even getting it to pass a GOP House could be a challenge, as it would need 218 votes, with only 4 Republican defectors. Moderate and swing-district Republicans have expressed skepticism regarding their support of the bill, thus far.
More From GOBankingRates
