(RepublicanDaily.org) – As negotiations to avert the national debt ceiling have come to a conclusion, at least for now, President Joe Biden’s student loan cancellation has reportedly halted. The President announced the plan to give student loan relief to “borrowers in need” in August 2022. Congress voted to repeal the student loan forgiveness plan, with the Senate vote dealing what analysts called a “bipartisan blow” to Biden following the repeal motion by House Republicans. Biden is expected to veto the repealed measure. Yet, analysts stated, the cancellation is likely still going to proceed, as Congress and the President hash out negotiations over the national debt crisis.
Earlier this year, United States Treasury Secretary Janet Yellen explained to Congress that the U.S. government was soon to default on national debts. This meant that, for the first time in history, the American government would not be able to pay its obligations, and the national credit score would take a direct hit. Because of the catastrophic implications this would have for both the U.S. economy and the world market, Congress ramped up efforts to halt the potential for a national debt default. At the time of this report, Congress had reached a deal to suspend the debt ceiling limit until January 2025, and to cut federal spending by $1.5 trillion in the next decade.
Treasury Secretary Janet Yellen had reportedly warned Congress that, if a deal was not reached by June 1, there would be little the U.S. Treasury or the federal banks could enact to protect the economy, and the nation would default. Yellen later reassessed that deadline as being June 5.
For that reason, House Speaker McCarthy was swift to propose measures that would reach a compromise between the President and Democrats and Republicans. The debt ceiling would be raised, but government spending would also be put in check. McCarthy proposed a bill that would drive spending cuts called the Limit, Save, and Grow Act.
The debate over the terms of the Limit, Save, and Grow Act was heated, and Republicans lost some of their members on voting in the proposed measures. At the time of this report, Democratic Congress members voted to keep the measure “on track”.
Copyright 2023, RepublicanDaily.org
