The House of Representatives passes legislation that would pair an increase in the nation’s debt ceiling with a combination of spending cuts, caps on future spending growth, and construction-significant reforms to the permitting process.
On April 26, the House of Representatives voted to pass the Limit, Save, Grow Act, legislation that would pair an increase in the nation’s debt ceiling with a combination of spending cuts, caps on future spending growth, and reforms to the regulatory and permitting process.
This will likely lead to negotiations between leaders of the House and Senate, along with President Biden, on final legislation to raise the debt ceiling before the so-called “X-Date” when the Treasury Department would officially default on the federal debt. Recent forecasts suggest that the X-Date could come as early as June.
The Limit, Save, Grow Act includes provisions to:
- Cap so-called “discretionary” spending growth at one percent annually over the next decade.
- Rescind unspent COVID relief funding.
- Rescind $71 billion in additional funding for the Internal Revenue Service that was included in the Inflation Reduction Act (IRA).
- Repeal many of the tax incentives for renewable energy production and the purchase of electric vehicles included in the IRA.
- Add work requirements for some means-tested welfare programs.
Additionally, the legislation includes H.R. 1, the AGC-supported Lower Energy Costs Act, which expands federal oil and gas leasing, and reforms permitting for some infrastructure projects, as well as the “REINS Act,” which requires major federal regulations be approved by Congress.
While the Limit, Save, Grow Act would almost assuredly be vetoed by President Biden in its current form, passing the bill out of the House places additional pressure on the Biden Administration and Senate Democrats to work with House Republicans on a negotiated agreement. Before passage, President Biden said he would not negotiate on the debt ceiling, and would only sign a “clean” debt ceiling increase. That position will likely become politically untenable now that the House of Representatives passed the Limit, Save, Grow Act.
If you have questions, please contact Matthew Turkstra at (202) 547-4733 or [email protected].
Do you like this page?