After a long and grueling process that at times looked to be headed to default rather than to a deal, House Speaker Kevin McCarthy (R-Calif.) has forced President Biden to agree to necessary spending concessions that will get the country back on track and help reduce the economic strains placed on American families.
The wasteful government spending that has been so pervasive in Washington for years is the silent killer of economic prosperity. But more recently these problems have been so crippling for countless American families that they are impossible to ignore.
Inflation remains too high, significantly affecting families, seniors and job creators who have struggled to keep up with rising costs for daily essentials. Interest rates have also steadily increased, making everything from mortgages and car loans to credit card payments more expensive. All the while, the federal government continues to run massive budget deficits — a metaphorical slap in the face to Americans who must work harder to pay their bills.
The Fiscal Responsibility Act changes the tide in Washington. The legislation sends a clear message: The days of unchecked government spending are over. House Republicans are restoring responsibility to Washington, and every American will benefit.
Is this bill perfect? No.
You’d be hard-pressed ever to find a perfect bill in Washington. But this bill is undoubtedly a step in the right direction — and in a time of divided government when significant wins are few and far between, this is a clear victory. The deal will combine raising the federal debt ceiling with smart fiscal reforms to put the country on a more sustainable path.
The deal will cut nondefense discretionary spending to $704 billion this year, a significant decrease from the projected 2024 baseline of $757 billion — while protecting veterans’ health benefits. The domestic discretionary cap also has a 1 percent annual limit for its growth rate, which, when you factor in inflation, essentially reduces spending for each year.
The Fiscal Responsibility Act will also claw back $28 billion of unspent COVID-19 relief funds, which are no longer necessary now that the pandemic is over. The move will help lower the artificially boosted demand in the market that has been fueling inflation and rising interest rates.
The new work requirements are also a critically important part of this legislation. Despite what far-left naysayers will tell you, the work requirements proposed in this bill will help encourage able-bodied Americans to enter the workforce and achieve financial independence. And this deal will reduce red tape and streamline new energy programs, a move that will help lower energy costs that have risen to 40-year highs under President Biden.
Republicans may not have gotten everything they wanted, but this bill gives them plenty to be proud of. By prioritizing responsible fiscal policy over political expedience, Speaker McCarthy was able to extract critical wins from the Biden administration — all for raising a debt ceiling that Congress would’ve had to raise anyway.
Despite the narratives coming out of the media early in the year, House Republicans are proving they can work together to deliver results for the American people. Now it’s time for Congress to finish the job.
The House and Senate must quickly pass the debt ceiling deal and lock in these smart policy wins. Delaying and obstructing the bill’s passage would put these fiscal policy goals at risk and the country at risk of default, sending global financial markets into turmoil. Speaker McCarthy has put forward a reasonable and responsible deal — it deserves to be passed.
John Burnett is the managing director and founder of 1 Empire Group, a business consulting company, and an adjunct assistant professor at New York University.