Bipartisan House Group Releases Debt Ceiling Compromise Amid Biden-McCarthy Standoff

The bipartisan House Problem Solvers Caucus proposed a compromise framework to raise the debt ceiling and avoid a default amid a standoff between Democratic President Joe Biden and Republican House Speaker Kevin McCarthy. 

The Details: The plan would suspend the debt ceiling through December 31, 2023, create a Fiscal Commission to recommend steps to stabilize deficits long-term, add controls to limit 2024 spending, and reform the budget and appropriations process. The group proposing the plan includes 32 Democrats and 31 Republicans from the 435-member House. It is unclear whether the proposal stands a chance in either the House or the Senate. 

For Context: For months, McCarthy has urged Biden to negotiate with Republicans to cut spending as a prerequisite for raising the debt ceiling. Biden has refused to consider Republicans’ demands, arguing that the costs of a default are too high and that Congress has approved raising the debt limit in the past without issue. On Monday, McCarthy proposed suspending the debt ceiling for one year and placing limits on future spending increases.

How the Media Covered It: Coverage of the bipartisan proposal was moderately common across the spectrum. While Fox News (Right bias) framed McCarthy’s proposal as capping spending at 2022 levels, AP (Lean Left bias) noted that it would place a 1% cap on yearly non-defense spending increases over the next decade.