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House GOP's Budget Hawks Now Want A $4 Trillion Debt Limit Hike

House GOP's Budget Hawks Now Want A $4 Trillion Debt Limit Hike

HuffPost
Thursday, January 16, 2025 5:09 PM GMT

The Treasury Department will begin using accounting moves soon to keep from defaulting. The House Freedom Caucus says its proposal would buy two years of time.

The House Freedom Caucus, a group of hard-right conservative and libertarian Republicans, wants a $4 trillion hike in the nation’s debt limit as part of the GOP’s big but still-developing tax and spending cut plans.

A hike in the debt limit would allow the government to continue borrowing to repay past debts and keep it from defaulting on the current $36 trillion-plus in outstanding debt. A default by the U.S. on its debt would trigger catastrophic economic consequences, economists say.

In a social media post early Thursday, the Freedom Caucus proposed the $4 trillion hike as part of a package of spending increases for increased border security and boosting the Pentagon’s budget. They said the boost would allow borrowing for another two years.

The group, which has long been a thorn in the side of House GOP leaders with its demands for more hard-line policies, said the hike would have to be accompanied by “dollar-for-dollar” spending cuts over 10 years.

“Our proposal is a Republican plan that can reach 218 votes, that would allow us to keep the ball on the Republican side of the field for defense and non-defense appropriations ― while delivering wins and uniting the conference,” the group said in its post.

Read full story on HuffPost
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