Kevin McCarthy's Speaker Drama Raises Fresh Fears About Credit Limit (2023)

WASHINGTON — Rep. Kevin McCarthy of California won the House speakership in a dramatic vote that ended at 12:30 a.m. Saturday, but a breakdown in his party and a deal he made to win Republicans raised risks of continued political chaos. Disrupt the US financial system.

Economists, Wall Street analysts and political observers are warning His concessions to fiscal conservatives Collecting votes to raise the credit limit, Mr. That could make it very difficult for McCarthy — or even to vote — for such a measure. It can prevent Congress from keeping the government open, paying the nation’s bills, and doing basic jobs Avoiding trillions of dollars in US debt.

A speakership battle that lasted more than four days and 15 rounds of votes suggested President Biden and Congress could be on a very dangerous path later this year. Debt Limit Debate Since 2011, former President Barack Obama and the new Republican majority have almost never paid off the nation’s debt before cutting an 11th-hour deal.

“If all we’re seeing is a sign of a completely divided House Republican convention that’s going to be unable to get 218 votes on almost any issue, that tells you the odds are going to go to the 11th hour or the last minute, or whichever is more extreme,” said Goldman Sachs chief political economist for research. Expert Alec Phillips said in an interview Friday.

The federal government spends more money than it takes in revenue each year, creating budget deficits that will average more than $1 trillion annually over the next decade. That deficit would add to a national debt rose to $31 trillion Last year.

Federal law puts limits on how much the government can borrow. But the government does not need to balance its budget. That is, lawmakers must periodically pass laws to raise the debt ceiling to avoid a situation where the government can’t pay all its bills, jeopardizing payments including military salaries, Social Security benefits and loans to holders of government bonds. Goldman Sachs researchers estimate that Congress would need to raise the debt ceiling in August to prevent such a scenario.

Understand the US debt ceiling

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What is the loan ceiling? Also known as debt ceiling Credit limit, is the ceiling on the total amount of money the federal government is authorized to borrow through U.S. Treasury securities, such as bills and savings bonds, to meet its fiscal obligations. America runs budget deficits and has to borrow huge amounts to pay its bills.

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Why is there a limit on US borrowing? According to the Constitution, Congress must authorize borrowing. The debt ceiling was established in the early 20th century so the Treasury didn’t have to issue loans every time to pay the bills.

What happens if the credit limit is exceeded? Exceeding the debt limit can lead to the United States first defaulting on the loan. Creates financial chaos In the global economy. It would force U.S. officials to choose between continued aid, such as Social Security checks, and interest payments on the nation’s debt.

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Raising the limit was once the norm but is becomes increasingly difficult Over the past few decades, Republicans have used the cap as a ploy to force spending cuts. Their leverage stems from the potential damage to the economy if the limit is not increased. Increase in credit limit not approve new expenditures; It allows the US to finance existing obligations. Unless that cap is lifted, the government will not be able to pay all its bills, including salaries for military members and social security payments.

Donald J. The four years of Trump’s presidency have been an exception to the debt ceiling drama, with Republicans largely abandoning their push to link increases in the limit to cuts in federal spending. As the deadline to raise the cap approaches in 2021, Senate Republicans are pushing Mr. clashed with Biden, but those lawmakers ultimately helped Democrats pass legislation that would increase the cap.

Some Democrats sought to avoid this scenario last year, when it became clear their party would lose at least one chamber of Congress. To avoid any chance of a shutdown before the 2024 presidential election, they hoped to raise the limit again in a lame-duck session of Congress after the November election that gave Republicans control of the House. But that effort was never fruitful.

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As a result, the next round of debt-limit briefings could be the most fraught on record — as evidenced by the battle against the speakership. Conservative Republicans have already made it clear they won’t pass the debt ceiling increase without significant spending controls, including cuts to spending on the military and domestic issues unrelated to national security.

With Republicans holding the narrowest majority since the 2010 midterms, Mr. It empowered conservative holdouts who opposed McCarthy. in the middle The demands of that group Steep cuts in federal spending and a push to balance the federal budget without raising taxes within a decade.

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“Would he be willing to shut down the government rather than raise the debt ceiling?” Representative Ralph Norman of South Carolina recently met Mr. He was one of 20 Republicans who voted against McCarthy. told reporters. “It’s a non-negotiable.”

Mr. McCarthy appeared to agree to those demands, promising to allow open debate on spending bills and not raise the debt ceiling without major cuts — including efforts to reduce the cost of so-called mandated programs including Social Security and Medicare — a deal Mr. brought many reserves into his camp, including Norman.

If the speaker violates that agreement, he risks being ousted by his caucus — under the terms of the agreement, a lawmaker who is Mr. Vote to oust McCarthy. But Mr. Biden and his party leaders in the Democratic-controlled Senate have vowed to fight those cuts, particularly to Social Security programs. That means it could mean a long-term conflict where the government will run out of money to pay its bills.

Staunch budget hawks in Washington have long argued that America needs to stop spending — and borrowing — so much money. They have proposed a variety of ways to slow the growth of long-term spending, including cuts to health care for poor and older Americans. Many have called for ending some tax breaks while ensuring the rich and corporations pay more.

Still, many of those fiscal hawks called the Republican spending requests irresponsible and could create deadlocks on key fiscal issues.

“Their specific demand to balance the budget over 10 years is completely unrealistic. It would take $11 trillion in savings,” said Maya Mackinas, chair of the Committee for a Responsible Federal Budget in Washington.

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“I like to save more money than a lot of people,” Ms. MacGuineas said. “But what they’re asking for is unattainable.”

The move toward a deadline to raise the debt ceiling will cause chaos in financial markets, including stocks and Treasuries, Mr. Phillips said. If Congress fails to raise the debt ceiling and the government can’t borrow more money, the U.S. could face a sudden drop in federal spending equivalent to one-tenth of daily economic activity, Mr. Phillips said.

“It doesn’t feel like a false alarm,” he said.

In 2011, Republicans and Mr. Obama also agreed to raise the debt ceiling in a deal that also imposed future limits on domestic spending increases. Mr. Ms. Biden said the negotiations between Biden and House Republicans will be the same this time around. Mackinas, Mr. Phillips and other analysts expressed skepticism, saying that Mr. The factions that blocked McCarthy’s promotion were unwilling to compromise on remarkably modest concessions. Democrats.

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Administration officials have given no indication that they will negotiate with Republicans on raising the debt ceiling — nor are they preparing for the possibility that a House speaker will refuse to vote on a debt ceiling increase without steep spending cuts.

White House press secretary Karine Jean-Pierre told reporters on Friday that Mr.

“We have said that the debt ceiling should not be used politically,” he said. “We’ve been very clear. If you look at what the Republicans in Congress have done three times — three times during the Trump administration — they’ve been able to deal with it in a responsible way, right? They’ve voted three more times to raise the debt ceiling. So Congress has to be responsible again.

Moderate lawmakers have already begun discussing possibilities for how to raise the House limit. A longer idea: a discharge petition signed by a majority of the people to force a vote on a bill. Such a move would rely entirely on adding a handful of Republicans to the Democratic Party vote. That would require extensive coordination on both sides of the aisle and expose Republican defectors to punishment and primary challenges.

However, Representative Brian Fitzpatrick, Republican of Pennsylvania, accepted the possibility of such a compromise in an interview with CNN last week. “There are many options for avoiding leadership,” he said. “Not a ton. But we have options.

Kevin McCarthy's Speaker Drama Raises Fresh Fears About Credit Limit (1)

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FAQs

What does the Speaker of the House do? ›

The Speaker is simultaneously the House's presiding officer, party leader, and the institution's administrative head, among other duties. The Speaker is elected at the beginning of a new Congress by a majority of the Representatives-elect from candidates separately chosen by the majority- and minority-party caucuses.

Who was the last Republican Speaker of the House? ›

Paul Ryan
Official portrait, 2018
54th Speaker of the United States House of Representatives
In office October 29, 2015 – January 3, 2019
Preceded byJohn Boehner
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What district does Kevin Mccarthy represent? ›

What's the name of the Speaker of the House of Representatives now? ›

Who is 2nd in line to the Speaker of the House? ›

Present line of succession
No.OfficeIncumbent
1Vice PresidentKamala Harris
2Speaker of the House of RepresentativesKevin McCarthy
3President pro tempore of the SenatePatty Murray
4Secretary of StateAntony Blinken
14 more rows

Can Speaker of the House be removed? ›

The House of Representatives, by clause 7 of rule I, has provided for appointment and election of Speakers pro tempore. A Speaker may be removed at the will of the House, and a Speaker pro tempore appointed, 2 Grey, 186; 5 Grey, 134.

Who is the longest serving Speaker of the House? ›

Sam Rayburn (1940–1947; 1949–1953; and 1955–1961) was the longest serving speaker.

Has any Speaker of the House ever been President? ›

James K. Polk of Tennessee was the first (and only) Speaker to serve as President.

Who is the new Speaker of the House 2023? ›

The 128th U.S. speaker election since the office was created in 1789, it began on January 3, 2023, and concluded in the early morning hours of January 7 when Kevin McCarthy of California, leader of the House Republican Conference, won a majority of votes cast on the fifteenth ballot.

How old is speaker Mccarthy? ›

Who is the minority whip? ›

Majority Leader: Hoyer (D), MDMinority Leader: McCarthy (R), CA
Majority Whip: Clyburn (D), SCMinority Whip: Scalise (R), LA
Chief Deputy Whips: Schakowsky (D), IL and Butterfield (D), NCChief Deputy Whip: Ferguson (R), GA
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What region is Bakersfield California in? ›

San Joaquin Valley

What sole power does the House have? ›

The House has several powers assigned exclusively to it, including the power to initiate revenue bills, impeach federal officials, and elect the President in the case of an Electoral College tie. The Senate is composed of 100 Senators, 2 for each state.

How many votes does it take to win the Speaker of the House? ›

To be elected speaker a candidate must receive an absolute majority of the votes cast, as opposed to an absolute majority of the full membership of the House – presently 218 votes, in a House of 435.

Has there ever been a black Speaker of the House? ›

In May 1874, Rainey became the first African American to preside over the House of Representatives as Speaker pro tempore. In the closing hours of Congress in 1878, Rainey was one of the few sober members present.

Why is the Speaker of the House so powerful? ›

The Speaker of the House is responsible for administering the oath of office to the Members of the U.S. House of Representatives, giving Members permission to speak on the House floor, designating Members to serve as Speaker pro tempore, counting and declaring all votes, appointing Members to committees, sending bills ...

Who is 4th in line for President? ›

If the President were to resign or die, the Secretary of State is fourth in line of succession after the Vice President, the Speaker of the House, and the President pro tempore of the Senate.

Who is 3rd in line for President? ›

If the President of the United States is incapacitated, dies, resigns, is for any reason unable to hold his/her office, or is removed from office, he/she will be replaced in the following order: Vice President. Speaker of the House. President Pro Tempore of the Senate.

Can the speaker of the House block a bill? ›

Under House rules, the Speaker schedules floor votes on pending legislation. The Hastert Rule says that the Speaker will not schedule a floor vote on any bill that does not have majority support within their party—even if the majority of the members of the House would vote to pass it.

Can the speaker of the House punish members? ›

Introductory Sec. 1 . In General Authority; Definitions and Distinctions The authority of the House to discipline its Members flows from the Constitution. It provides that each House may ``punish its Members for disorderly Behaviour, and, with the concurrence of two thirds, expel a Member.

WHO removes Speaker of House? ›

Speaker can be removed by the Lok Sabha by a resolution passed by effective majority of the house as per Constitution of India[Articles 94]. The Speaker is also removed on being disqualified for being Lok Sabha member under sections 7 and 8 of Representation of the People Act, 1951.

Who was the shortest serving Speaker of the House? ›

Theodore Medad Pomeroy (December 31, 1824 – March 23, 1905) was an American businessman and politician from New York who served as the 26th speaker of the United States House of Representatives for one day, from March 3, 1869, to March 4, 1869, the shortest American speakership term in history.

How much does the Speaker of the House make? ›

Leadership and other positions
PositionSalary
President pro tempore of the Senate$193,400
Majority leader and minority leader of the Senate$193,400
Majority leader and minority leader of the House of Representatives$193,400
Speaker of the House of Representatives$223,500
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Who is the oldest Speaker? ›

Sister André became the oldest living person last year when the previous oldest person, Kane Tanaka of Japan, died at 119 years old in April 2022. According to the Gerontology Research Group, the oldest living person is now Maria Branyas Morera of Spain at 115 years and 320 days, as of Wednesday.

Who is the only Speaker to become president? ›

Elected to Parliament in 1977 as a candidate of the Janata Party, Reddy was unanimously elected Speaker of the Sixth Lok Sabha and three months later was elected unopposed as President of India.

Who was the oldest president? ›

The youngest to become president by election was John F. Kennedy, who was inaugurated at age 43. The oldest person to assume the presidency was Joe Biden, the nation's current president, who was inaugurated at age 78.

Do presidents get paid for life? ›

The Secretary of the Treasury pays a taxable pension to the president. Former presidents receive a pension equal to the salary of a Cabinet secretary (Executive Level I); as of 2020, it was $219,200 per year and since January 2022, $226,300. The pension begins immediately after a president's departure from office.

Who is the majority whip of the House 2023? ›

House Majority Whip Tom Emmer.

How many new members of Congress in 2023? ›

The 118th United States Congress began on January 3, 2023. There were seven new senators (two Democrats, five Republicans) and 74 new representatives (34 Democrats, 40 Republicans), as well as one new delegate (a Republican), at the start of its first session.

What is the Holman rule? ›

The Holman rule is a rule in the United States House of Representatives that allows amendments to appropriations legislation that would reduce the salary of or fire specific federal employees, or cut a specific program. Versions of the rule were in effect during 1876–1895 and again during 1911–1983.

Who was speaker before Ryan? ›

John Andrew Boehner (/ˈbeɪnər/ BAY-nər; born November 17, 1949) is an American retired politician who served as the 53rd speaker of the United States House of Representatives from 2011 to 2015.

How old is Kevin McCarthy? ›

Who is Joseph McCarthy and what did he do? ›

Joseph Raymond McCarthy (November 14, 1908 – May 2, 1957) was an American politician who served as a Republican U.S. Senator from the state of Wisconsin from 1947 until his death in 1957.

What is a government whip? ›

Whips are MPs or Lords appointed by each party in Parliament to help organise their party's contribution to parliamentary business. One of their responsibilities is making sure the maximum number of their party members vote, and vote the way their party wants.

What does whip stand for? ›

The term is taken from the "whipper-in" during a hunt, who tries to prevent hounds from wandering away from a hunting pack. Additionally, the term "whip" may mean the voting instructions issued to legislators, or the status of a certain legislator in their party's parliamentary grouping.

Who is the leader of the House? ›

Elected by the whole of the House of Representatives, the Speaker acts as leader of the House and combines several roles: the institutional role of presiding officer and administrative head of the House, the role of leader of the majority party in the House, and the representative role of an elected member of the House ...

What food is Bakersfield known for? ›

Bakersfield's Basque Food Culture. In Bakersfield's Old Town Kern neighborhood—also known as the Basque Block—you'll find the largest concentration of Basque restaurants in the United States. Each dining hall has its specialties, but one fact unites them: Basque food is served in hearty, prodigious quantities.

Is Bakersfield a nice place to live? ›

Located just two hours North of Los Angeles on the Kern River and right next to the Sequoia National Forest lies the city of Bakersfield, California. This southern California city in Kern County is considered a good place to live due to its high quality of life, affordability, and available housing.

What's Bakersfield famous for? ›

Dubbed “Nashville West,” Bakersfield is renowned for its contributions to country music and is the home of many recording artists, including Merle Haggard and Buck Owens. Educational institutions include Bakersfield (community) College (founded 1913) and California State University, Bakersfield (1965).

How many presidents have been impeached? ›

Three United States presidents have been impeached, although none were convicted: Andrew Johnson was in 1868, Bill Clinton was in 1998, and Donald Trump twice, in 2019 and 2021.

Who has more power lower house or upper house? ›

But on most matters, the Lok Sabha exercises supreme power. Let us see how: 1 Any ordinary law needs to be passed by both the Houses. But if there is a difference between the two Houses, the final decision is taken in a joint session in which members of both the Houses sit together.

How long does Speaker of the House serve? ›

The term ends on the expiration of the Congress in which he was elected, unless he has resigned, died, or been removed from office. Deschler Ch 6 Sec. 2. During the 104th through 107th Congresses, the Speaker's term of office was limited for four consecutive Congresses.

How many votes does it take to pass a resolution in the House? ›

If the bill passes by simple majority (218 of 435), the bill moves to the Senate. In the Senate, the bill is assigned to another committee and, if released, debated and voted on.

What are the 4 types of votes in the House? ›

In the House, there are four forms of votes: voice vote, division vote, yea and nay (or roll call) vote, and recorded vote. In the Committee of the Whole, the forms are voice vote, division vote, and recorded vote. Members may vote in the House.

Does the House need 2 3 vote? ›

Supermajority Requirements Under House Rules

The House has four rules that require a supermajority vote of the Members voting, a quorum being present, to pass legislation: 1. Rule XV, clause 1, requires a two-thirds vote to suspend the rules of the House. 2.

Who was the first black man in House of Representatives? ›

The first African American to serve in the U.S. House of Representatives, Joseph Rainey, was born on this date in Georgetown, South Carolina. Rainey and his parents were enslaved, but his father was permitted to work as a barber and purchased his family's freedom in the early 1840s.

Who was the first black U.S. representative? ›

First African-American Representative elected to Congress

Joseph Rainey of South Carolina began his service in the House of Representatives when he was sworn in on December 12, 1870.

Who was the first black senator? ›

In 1870 Hiram Revels of Mississippi became the first African American senator. Five years later, Blanche K. Bruce of Mississippi took the oath of office. It would be nearly another century, 1967, before Edward Brooke of Massachusetts followed in their historic footsteps.

How many Republican speakers of the House have there been? ›

Every speaker of the House has been a member of a political party or faction; the number affiliated with each is: Democratic – 22; Republican – 17; Democratic-Republican – 6; Jacksonian – 3; Whig – 3; Federalist – 2; Pro-Administration – 2; National Republican – 1; American – 1; Anti-Administration – 1.

When was the last Republican majority in the House? ›

The 2014 elections gave the Republicans control of the Senate and the House for the first time since the 109th Congress. With 248 seats in the House of Representatives and 54 seats in the Senate, this Congress began with the largest Republican majority since the 71st Congress of 1929–1931.

When was the last time the House of Representatives was Republican? ›

The Republicans retook the House in 2011, with the largest shift of power since the 1930s. However, the Democrats retook the house in 2019, which became the largest shift of power to the Democrats since the 1970s.

Who was speaker of the House when President Obama was in? ›

John Andrew Boehner (/ˈbeɪnər/ BAY-nər; born November 17, 1949) is an American retired politician who served as the 53rd speaker of the United States House of Representatives from 2011 to 2015.

Who was first Speaker of the House? ›

Frederick A.C. Muhlenberg of Pennsylvania was elected presiding officer on April 1, 1789, the day the House organized itself during the First Federal Congress (1789–1791). Total number of Speakers: To date, 55 individuals have served as Speaker of the House of Representatives.

When was the last non Republican or Democrat president? ›

Millard Fillmore, a member of the Whig party, was the 13th President of the United States (1850-1853) and the last President not to be affiliated with either the Democratic or Republican parties.

Has there ever been a supermajority in Congress? ›

In the November 2008 elections, the Democratic Party increased its majorities in both chambers (including – when factoring in the two Democratic caucusing independents – a brief filibuster-proof 60-40 supermajority in the Senate), and with Barack Obama being sworn in as president on January 20, 2009, this gave a ...

How many years is a US House of Republican term? ›

Members of the House of Representatives serve two-year terms and are considered for reelection every even year. Senators however, serve six-year terms and elections to the Senate are staggered over even years so that only about 1/3 of the Senate is up for reelection during any election.

Who is the most senior Republican in the House of Representatives? ›

Current seniority list
RankMemberParty
1Hal RogersR
2Chris SmithR
3Steny HoyerD
4Marcy KapturD
91 more rows

Who was the last Democrat president? ›

Registered Democrat (1942–1970). Donald Trump (New York), 45th President of the United States (2017–2021), Registered Democrat on and off until 2009.

Who was first woman in Congress? ›

Since 1917, when Representative Jeannette Rankin of Montana became the first woman to serve in Congress, a total of 423 women have served as U.S. Representatives, Delegates, Resident Commissioners, or Senators.

Who is the 54th Speaker of the House? ›

Paul D. Ryan elected by majority of Members

Ryan, R-Wis., was elected 54th Speaker of the United States House of Representatives by a majority of Members on Thursday, October 29, 2015. He replaces Speaker John Boehner, who stepped down from the position.

Who was the 51st Speaker of the House? ›

John Dennis Hastert (/ˈhæstərt/; born January 2, 1942) is an American politician and sex offender who represented Illinois's 14th congressional district from 1987 to 2007 and served as the 51st speaker of the United States House of Representatives from 1999 to 2007.

Who was the Speaker of the House when Lincoln was president? ›

Schuyler “Smiler” Colfax was a Congressman from Indiana (Republican, 1855-69) and Speaker of the House of Representatives from 1863-1869. A Whig and a Know-Nothing before he joined the Republicans, he became more radical on slavery and reconstruction as he grew older.

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