Defiant McCarthy, Cautious Biden: Capitol Reacts as US Averts Default

“We did pretty dang good,” McCarthy said, appearing defiant following the passage of the Fiscal Responsibility Act, 2023 in the US House of Representatives on Thursday. Hours later the US Senate passed the bill and averted fears that the US will default on its debt and raised the debt ceiling, allowing the US Treasury to borrow to cover the nation’s debts.

The Biden-McCarthy package, as some in the US is calling it, helped put aside the contentious debt ceiling matter, averting potential economic turmoil until 2025 and the next presidential election but Republicans and Democrats are not fully pleased.

For Democrats the issue was an Appalachian natural gas line and for Republicans military spending, despite a boost was not enough. While the Appalachian gas line was an issue of two Dems and two Virginias, Republicans felt the military spending boost did not cover inflation.

All of these could not dampen McCarthy as he took a potshot at Senate Majority Leader Chuck Schumer. In a tweet, he mocked the Democrat for claiming earlier that Dems would prevail over the spending cut negotiations and raise the debt ceiling on their own terms.

“‘We’re going to win this fight, and it’s going to be a clean debt ceiling.” – Senator Schumer in February. That prediction didn’t age well’,” McCarthy tweeted along with a clip of Schumer.

“Results. Leaders Schumer and McConnell committed to pass all 12 appropriations bills on time this year—for the 1st time since 2005—under pressure of an auto spending cut I included in the debt limit agreement. Ending the era of the omnibus & getting Washington back to work!,” he said, poking a jibe at the omnibus package bill of 2022 launched by the Biden administration.

“Here’s what else becomes law alongside the biggest spending cut in history: Welfare work requirements to lift people out of poverty; The 1st permitting reform in 40 years to build more in America; Biggest clawback of taxpayer money ever with billions in unspent COVID funds,” McCarthy said, in a bid to nip the House Freedom Caucus-stirred rebellion, brewing against him, in the bud.

US President Joe Biden was reserved while reacting to the default relief. “Just now, Senators from both parties voted to protect our hard-earned economic progress and prevent a first-ever default. No one gets everything they want in a negotiation, but make no mistake: this bipartisan agreement is a big win for our economy and the American people,” Biden said, adding he will address the nation on Saturday.

Mitch McConnell, Senate Republican leader, said fiscal sanity has prevailed while reacting to passage of the bill. “Tonight, the Senate voted to avoid default and begin to curb Washington Democrats’ addiction to reckless spending. Four months after Speaker McCarthy invited US President Biden to begin negotiations, an important step toward fiscal sanity will finally become law,” McConnell said.

US Presidential candidates Ron DeSantis and Donald Trump are yet to react to the development. The House Freedom Caucus, who called those who passed the deal as ‘DC Cartel’, are also yet to react.

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