Wednesday, May 13, 2026
Washington DC
New York
Toronto
Distribution: (800) 510 9863
Press ID
  • Login
RH NEWSROOM National News and Press Releases. Local and Regional Perspectives. Media Advisories.
Yonkers Observer
  • Home
  • World
  • Politics
  • Finance
  • Technology
  • Health
  • Culture
  • Entertainment
  • Trend
No Result
View All Result
  • Home
  • World
  • Politics
  • Finance
  • Technology
  • Health
  • Culture
  • Entertainment
  • Trend
No Result
View All Result
Yonkers Observer
No Result
View All Result
Home Politics

House Republicans Prepare to Slash Spending in Budget Showdown

by Yonkers Observer Report
March 8, 2023
in Politics
Share on FacebookShare on Twitter

“We’re in a total strategic cul-de-sac on the right, and our fiscal warriors and strategists have totally failed in the sense that, point to any cuts we’ve had success-wise since 1997,” Mr. Vought said in an interview. “I actually think that that’s the worst part of the federal spending, because it’s the bureaucracy.

Understand the U.S. Debt Ceiling

Card 1 of 5

What is the debt ceiling? The debt ceiling, also called the debt limit, is a cap on the total amount of money that the federal government is authorized to borrow via U.S. Treasury securities, such as bills and savings bonds, to fulfill its financial obligations. Because the United States runs budget deficits, it must borrow huge sums of money to pay its bills.

The limit has been hit. What now? America hit its technical debt limit on Jan. 19. The Treasury Department will now begin using “extraordinary measures” to continue paying the government’s obligations. These measures are essentially fiscal accounting tools that curb certain government investments so that the bills continue to be paid. Those options could be exhausted by June.

What is at stake? Once the government exhausts its extraordinary measures and runs out of cash, it would be unable to issue new debt and pay its bills. The government could wind up defaulting on its debt if it is unable to make required payments to its bondholders. Such a scenario would be economically devastating and could plunge the globe into a financial crisis.

Can the government do anything to forestall disaster? There is no official playbook for what Washington can do. But options do exist. The Treasury could try to prioritize payments, such as paying bondholders first. If the United States does default on its debt, which would rattle the markets, the Federal Reserve could theoretically step in to buy some of those Treasury bonds.

Why is there a limit on U.S. borrowing? According to the Constitution, Congress must authorize borrowing. The debt limit was instituted in the early 20th century so that the Treasury would not need to ask for permission each time it had to issue debt to pay bills.

“I’m not saying you can balance on discretionary alone,” he said, referring to the part of the federal budget controlled by Congress. “But a work requirement food stamp program is a lot easier to sell than premium support,” he added, referring to a plan to make Medicare beneficiaries shoulder more of their costs.

The strategy suggested by Mr. Vought, who has become something of an intellectual and tactical guru to many of the hard-liners in the House Republican Conference, would enact deep spending cuts to what he called the “woke and weaponized government.”

The outline includes a 45 percent cut to foreign aid; adding work requirements for food stamp and Medicaid beneficiaries; a 43 percent cut to housing programs, including phasing out the Section 8 program that pays a portion of monthly rent costs for low-income people; cutting the F.B.I.’s counterintelligence budget by nearly half; and eliminating Obamacare expansions to Medicaid to save tens of billions of dollars.


How Times reporters cover politics. We rely on our journalists to be independent observers. So while Times staff members may vote, they are not allowed to endorse or campaign for candidates or political causes. This includes participating in marches or rallies in support of a movement or giving money to, or raising money for, any political candidate or election cause.

Nearly 40 states have accepted federal funding for expansion under the Affordable Care Act, providing health care coverage for an estimated 12 million individuals living near or below the poverty line.

The proposal would also eliminate the Office of Diversity, Equity and Inclusion at the Pentagon, cut $3.4 billion in State Department migration and refugee assistance, and make Pell grants available only to students whose families cannot contribute any money toward a college education.

Adding work requirements to programs like food stamps is “a given,” according to Mr. Norman.

“We’re $32 trillion in debt,” said Representative Chip Roy, Republican of Texas. “We’ve got to get people back to work, get the economy going.”

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Trump Was Taped Discussing Sensitive Document He Had After Leaving Office

3 years ago

Revisiting Elton John’s iconic 1975 Dodger Stadium concerts

3 years ago

Guantánamo Bay Prison Mission Is Stuck in a Cycle of Costly Delays

4 years ago

McCarthy Is Under the Gun as the House Returns for a Spending Fight

3 years ago
Yonkers Observer

© 2025 Yonkers Observer or its affiliated companies.

Navigate Site

  • About
  • Advertise
  • Terms & Conditions
  • Privacy Policy
  • Disclaimer
  • Contact

Follow Us

No Result
View All Result
  • Home
  • World
  • Politics
  • Finance
  • Technology
  • Health
  • Culture
  • Entertainment
  • Trend

© 2025 Yonkers Observer or its affiliated companies.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In