Fiscally conservative non profit groups, which have been loudest advocates of limiting federal expenditures in Washington, D.C., disagree on whether they should support the Fiscal Responsibility Act, a compromise legislation that was negotiated by House Speaker Kevin McCarthy and President Joe Biden.
The bill would suspend America’s debt ceiling until Jan. 1, 2020, which would prevent a default that could occur as soon as June 5, and allow unlimited borrowing during this time. In exchange, conservatives will get several policy changes and cuts in public spending. Some fiscally conservative groups, however, think that the bill does not go far enough. They are opposed to its passage.
The Club for Growth wrote that the Fiscal Responsibility Act “continues a slow march off a cliff towards the fiscal crisis enabled” by the unsustainable debt. It added that the bill is “misleadingly titled which is actually fiscally irresponsible because it continues trillion dollar deficits in the future.”
Kevin Roberts, the president of the Heritage Foundation who was also present, stated that Republicans had “given away leverage” in their negotiations with the Biden Administration. He criticised the bill for leaving “untouched Biden’s secret fund for 87,000 additional IRS agents” and for giving up the $132 billion of cuts promised by the Limit, Save, Grow Act, referring to the debt ceiling measure House Republicans adopted in April.
Roberts wrote, “This agreement would further America’s path towards economic destruction and increased federal control.” Heritage Action, the Heritage Foundation’s lobby group affiliated with it, announced its opposition as well and threatened to downgrade its scorecard for members who voted “Yes”.
Some conservative groups, however, have called on Congress to pass the bill quickly. Among them is Americans for Tax Reform (an anti-tax group) that sponsors the Taxpayer Protection Pledge among political candidates. Isabelle Morales wrote in the group’s federal matters manager that the bill is “a crucial step towards the right direction.” It does not include tax hikes and leftist priorities.
Americans for Prosperity praised the bill for “modest reforms”, and encouraged members to support it, even though they stated that there was more to be done. An officer wrote that the bill “only begins to address our nation’s spending problems.”
The Congressional Budget Office, in a letter sent to McCarthy on February 2, estimated that the bill will reduce federal budget deficits of $1.5 trillion within the next ten years. McCarthy had called this the “largest expenditure cut ever”. However, certain provisions, like the new work requirements for SNAP, would increase spending.
According to reports, the bill is likely to be opposed by nearly 50 members of both parties. This means that it will need Democratic support in order to pass.
The bill’s sponsor Republican Rep. Patrick McHenry from North Carolina did not respond immediately to a comment request.
