House GOP setting up election-year debt limit fight

Published

2 years ago

April 21, 2023

admin

House Republicans could be setting up another fight over the debt limit — this time, just months before the 2024 presidential election.

A sweeping, 320-page bill they unveiled this week would raise the debt ceiling, which caps how much money the Treasury can borrow to pay the country’s bills, through the end of next March or by $1.5 trillion, whichever happens first.

The move has already prompted fierce blowback from Democrats, with Senate Majority Leader Chuck Schumer (D-N.Y.) dismissing the proposal as a non-starter and accusing Republicans of punting the issue.

“Amazingly, one of the few specifics [Speaker] McCarthy has presented is his terrible idea to kick the can down the road for just one year and undergo the same crisis again,” Schumer said this week. “Why would anyone want to undergo this crisis again, again and again?”

Speaker Kevin McCarthy (R-Calif.) brushed off questions about the proposed timeline earlier this week, instead turning his focus to Democrats for refusing to come to the table to work out a deal that pairs raising the debt limit with fiscal reforms.

“I think the most important thing here is I would like to do this together and solve this problem, but they don’t want it, so we’re going to send a bill over to the Senate,” McCarthy told The Hill.

But other Republicans defended the timeline.

Rep. Andy Harris (R-Md.) told The Hill he prefers extending the debt limit “for a short period of time,” saying the move would allow House Republicans more leverage to shape fiscal policy in a divided Congress.

“You get another bite at the apple in a little while,” Harris told The Hill.

Rep. Kevin Hern (R-Okla.), chairman of the Republican Study Committee, the House’s largest GOP caucus, also said earlier this week shorter-term measures raising the debt limit could give the party more leeway for fiscal reforms. But he also said there’s other math at play behind the push.

“It really goes back to what you can actually get passed right now with 218 votes to be able to have that limit build your tail spinning right now,” Hern told The Hill. “It really is nothing about a second bite of the apple that’s not part of the calculus.”

“Look at the amount of money you would need to offset,” Hern said, adding the “debt ceiling would need to be raised to roughly $3.5 trillion to get beyond the election next year — and trying to find consensus on $3.5 trillion in savings might be very difficult.”

At the same time, some Republicans see their fight to curb spending as a winning issue, as the national debt hovers around the roughly $31.4 trillion threshold set by Congress more than a year ago.

“I think that spending is going to have a major impact on the presidential election because this inflation is hurting every American,” Rep. Byron Donalds (R-Fla.) said ahead of the bill’s release earlier this week.

Rep. Dan Crenshaw (R-Texas) also said then that he thinks Americans “will look at a list of the things that we’re asking for and say that it makes total sense.”

“Everyone should know by now our debt [is] a problem,” he told The Hill, but he also said he “doesn’t think it affects the election too much one way or the other.”

“I talk to regular voters,” he said, “they’re not having talks about the debt limit increase at the kitchen table.”

Still, partisan battles over the limit can garner significant public interest when cuts to popular programs are on the table.

Recent examples include the monthslong campaign by Democrats accusing Republicans of wanting to make cuts to popular programs like Social Security and Medicare — which GOP leaders adamantly vow is off the table in debt limit talks and weren’t included in the proposal rolled out this week.

And of course, there is the threat of a partisan fight triggering a federal default — an outcome Republicans in both chambers say won’t happen, but one experts warn could be catastrophic for the economy.

“It’s a risk because it’s a very volatile conference that McCarthy has to wrangle,” GOP strategist Rob Stutzman said. But he added that there’s a “pretty good upside for them as well.”

“If there’s a default, there’ll be massive blame,” he said, but he added: “I think the Republicans have wind in their sails and that there’s public opinion for them to use this as a leverage point on spending.”

Republicans saw an edge last year in polling when it comes to who Americans prefer on issues like the economy compared to Democrats.

Other polling has also shown a majority of Americans agree that the government is spending too much, with 60 percent of respondents saying so in an AP-NORC survey published in March.

But when pressed on where the government is spending too much, respondents in the poll, conducted between March 16-20, were largely divided in most areas. The only area where most voters — 69 percent — agreed is too costly is funding for assistance for other countries.

Coming in second was assistance for big cities, which 41 percent of respondents agreed the government spent too much on. And less than 30 percent of respondents said the same for areas like the military (29 percent), the environment (25 percent), aid for the poor (18 percent), child care assistance (16 percent), and education (12 percent).

The number of respondents who said spending for entitlement programs like Medicare and Social Security was excessive was even smaller, with 10 percent and 7 percent, respectively, saying as much in the poll. Both programs account for a significant chunk of annual spending.

GOP leadership plans to vote on the debt ceiling bill next week. But its chances of passage are unclear as leaders still work to shore up necessary support.

Democrats and advocates have also come out against a slew of proposal attached to the newly unveiled debt ceiling bill. That includes portions targeting popular decisions by the Biden administration on student loans, beefed up work requirements for food stamps recipients and those on Medicaid, among a host of other partisan plans. Indiana Gov. Holcomb signs bill making machine gun ‘switch’ illegal Former WWE wrestler charged with theft of millions from Mississippi welfare

The bill is very unlikely to pass the Democratic-led Senate as it stands. And though there is also support among Republicans in the Senate, they also acknowledge the final bill will ultimately need the backing of both parties to secure passage.

“It’s what he can get done, and it’s what the president would accept,” Sen. Mike Rounds (R-S.D.) said, when discussing the proposed election-year timeline and the impact another debt limit fight slated for early 2024 would have on the presidential race.

“That’s the reason why I say let them fight it out first, because clearly the President is going to have an interest in the presidential cycle,” Rounds said. “And most certainly the Speaker has an interest in the presidential cycle.”

Business

Former Bank of England governor Mark Carney named prime minister of Canada – succeeding Justin Trudeau

Published

1 hour ago

March 10, 2025

admin

Former Bank of England governor Mark Carney named prime minister of Canada - succeeding Justin Trudeau

Former Bank of England governor Mark Carney has been named Canadian prime minister after winning the Liberal Party leadership in a landslide victory.

Mr Carney, who also used to head up Canada’s central bank, had emerged as the frontrunner as his country was hit with tariffs imposed by President Trump.

He ended up winning 85.9% of the vote.

During his victory speech, he told the crowd: “Donald Trump, as we know, has put unjustified tariffs on what we build, on what we sell and how we make a living.

“He’s attacking Canadian families, workers and businesses and we cannot let him succeed and we won’t.”

Mr Carney said Canada would keep retaliatory tariffs until “the Americans show us respect”.

Mr Trump’s tariffs against Canada and his talk of making the country America’s 51st state have infuriated Canadians.

The American national anthem has been repeatedly booed at NHL and NBA games.

“Think about it. If they succeeded, they would destroy our way of life… America is a melting pot. Canada is a mosaic,” Mr Carney added.

“America is not Canada. Canada will never ever be part of America in any way, shape or form.”

An easy pick for his party – but now he must win over Canada

Diana Magnay

International correspondent

@DiMagnaySky

Mark Carney had no problem convincing the Liberal Party he was the best man for the job. 85.9% of the vote speaks for itself. Now he must convince the country.

After unparalleled experience as central bank governor, both of Canada and of the UK, albeit at different times, he has the economic wherewithal to fortify the economy against the battering Donald Trump seems intent on dealing it.

He has made it very clear he is ready for the fight to come. “In trade, as in hockey, we will win!” he told his fellow liberals to wild applause. “We’re strongest when we are united,” he told the country on X.

His conservative rivals had what seemed like an unbeatable lead in the polls until just a few short weeks ago, but Trump’s trade tariffs have rallied Canadians behind the flag and their government.

That gives Mr Carney momentum ahead of a general election that will likely come sooner rather than later. Now he must exercise the political genius to capitalise on that.

The 59-year-old will replace Justin Trudeau, who has served as prime minister since 2015.

Mr Trudeau announced he was stepping down in January after facing calls to quit from a chorus of his own MPs.

The 53-year-old’s popularity had declined as food and house prices rose. He will stay in post until Mr Carney is sworn in.

Mr Carney will soon have to decide when to call a general election – a vote must take place on or before 20 October.

In 2013, he became the first non-UK citizen to run the Bank of England since it was founded in 1694.

His appointment came after Canada recovered from the 2008 financial crisis faster than many other countries.

During leadership debates, Mr Carney argued he was the only person prepared to handle Trump.

“I know how to manage crises,” he said.

“In a situation like this, you need experience in terms of crisis management, you need negotiating skills.”

The surge in Canadian nationalism has bolstered the Liberal Party’s chances in a parliamentary election.

World

How Donald Trump has upended millions of lives in his first 50 days in office

Published

1 hour ago

March 10, 2025

admin

How Donald Trump has upended millions of lives in his first 50 days in office

In just 50 days, Donald Trump has upended our world. He has ripped up rules, attacked allies and sided with enemies.

A country we thought for decades had our backs is no longer a reliable partner.

We travelled thousands of miles to ask what that means for our lives and millions of others – from the sweltering backstreets of Africa to the frozen wastes of Greenland and Finland’s tense border with Russia.

Donald Trump‘s supporters at home and abroad see him as the disruptor-in-chief who will bring peace and prosperity, putting America first.

But to many others we found he threatens chaos and a far darker future.

While Mr Trump may be challenging convention and bringing fresh thinking, his critics say he is moving too fast and erratically. His first 50 days in office, they claim, have weakened America’s place in the world and that will be exploited by rivals.

Risk of resurgent epidemics in Kenya

We went first to Kenya. The focus in the West may have been on Mr Trump and Russia but in the developing world, it’s the end of US aid that is grabbing the headlines.

On the frontlines of Africa’s war on HIV we heard Mr Trump’s actions being compared to an act of “biological warfare”.

Even among allies and admirers of the American president, there is deep unease and fear about what could come next, most of all the risk of resurgent epidemics of diseases like HIV, TB, malaria, ebola, and polio.

In one of Kenya’s poorest neighbourhoods in Nairobi, we joined health workers on their rounds, down sewage-filled alleyways into cramped, overcrowded buildings.

In a one-room home, we met a young mother who is dependent on American aid. Anne is HIV positive and needs daily medication and nutritional support for both herself and her one-year-old son. She is terrified for their future because of the cut in US aid.

“I’m so worried,” she told us, “because if it carries on like this the medication could run out. When the medicine is not there, the protector of my body is not there, so anything can just pass through me.”

‘We had no warning’

Kenya received $850m (£658m) in aid a year and that has now been abruptly severed. A US Supreme Court decision against the Trump administration may restore some of that but there is complete uncertainty about what happens next.

Martha, a healthcare manager in Nairobi, spelled out what is at stake: “We had no warning. We could not prepare the households. It was so sudden.

“We expect more death. We expect more children to die before the age of five. We expect more death for children living with HIV and it is going to be bad,” Martha said, adding that more than 20,000 children who use her organisation’s services will be affected.

90% of all US aid contracts cut

The Trump administration says the aid has been only been suspended for 90 days pending a review. But in reality, many key programmes appear to have been shut down completely.

After a 45-minute flight west of Nairobi to Kisumu, we saw what is happening away from big cities. The impact seemed just as severe.

At one provincial hospital US Agency for International Development (USAID) signs were everywhere but on doors that are now shut. It had been a hub for patients to receive their treatment but that’s now in doubt.

Staff told us there were just two months of supplies left for some medication, and less than a month for others, because there have been no more deliveries.

Patients were stockpiling drugs, said doctors, panicking for the future.

‘Biological warfare’

The US-supplied ammunition for Africa’s war against HIV, malaria, TB and other diseases is running out. It has taken decades and billions to bring them under control. The fear is of a return to epidemics not seen for years.

Eric Okioma is HIV positive and runs a charity helping others with the disease in Kisumu.

“When you look at it from a public health aspect, that’s biological warfare that’s the way I’m seeing it because from a human rights perspective, he did the wrong thing – he should not have taken it abruptly.”

Mr Trump is popular among many in Kenya. His conservative stance on issues like gender and sexuality resonates in this predominantly Christian country.

But even among admirers and supporters there is deep unease about his aid cut.

Peter Gunday, a father and churchgoer, told us he agreed Kenya should be less dependent on US aid and encouraged to provide for itself – but Mr Trump’s action had been too sudden.

“He wants to make America great again… [but give an] olive branch to us even if it is only for some time.”

The aid cut threatens lives and America’s standing in the world. The US has used aid to wield soft power and influence.

America in retreat

Its superpower rival China prefers building. They have lent billions for massive infrastructure projects like the new railway from Nairobi to the coast through the heart of the city’s safari park.

For Beijing it’s all leverage, applied ruthlessly to increase access to Africa’s abundant natural resources.

Under Trump, America is unilaterally deserting that battle for power and influence. Its values and interests will inevitably suffer. Not so much America first but America in retreat.

Finland prepares for Russian aggression

Closer to home, it is America’s shift on security causing the greatest concern. We flew thousands of miles north to one of NATO‘s newest member countries that sits on a border with Russia.

What did people in Finland make of what Mr Trump is doing to the Western alliance they have only just joined?

We filmed with Finland‘s military on the border with Russia that was closed because of the war in Ukraine.

In sparsely populated woods, locals report sightings of Russian drones, we were told. And there has been a surge in recruits to the border guard because of the international situation.

One of them, Aku Jaeske, told us he had joined up “for the defence of our own country”.

He said: “I think most of us, I think, are here because of that. It’s really hard if we have a 1,300 and something kilometre border with Russia – it’s pretty long – we have to have good men there.”

‘Bring it on’, says one Finn

What did he make of Mr Trump and what he saw on the news?

“I think it’s crazy when you turn your TV on today, you can’t know what is really happening.”

The war with Ukraine and Russia’s belligerence has sparked a boom in shooting, with hundreds of new ranges opening up in Finland to meet demand.

In a range outside Helsinki, one shooting enthusiast Jerkri told us what he thought was behind its growing popularity.

“The situation in Ukraine and people are noticing that maybe [they are] having to take care of themselves… think about it.”

Amateur shooters go through their paces, crisscrossing an open range at speed firing at targets dotted around the room. Patrick said he was worried by the direction of events.

“But if it did come to it… bring it on,” he said.

In a service station, Finland’s most popular tabloid had the headline, “Trump’s 10 gifts to Putin.”

Finns were once a byword for peace-loving neutrality. They are arming up now, and watching Mr Trump’s overtures to the Kremlin warily.

Finland after all is where Mr Trump stood next to Russian President Vladimir Putin during his first term in office and infamously said he would believe him over the word of US spy agencies.

US may be deserting the West

The Finns know from their history a belligerent Russia cannot be trusted.

In Europe, the US is not just withdrawing under Donald Trump, who says the US cannot prioritise the continent’s security any longer. It looks like it may be changing sides deserting the West entirely: Cutting off aid and intelligence to Ukraine while it is pummelled by Russian rockets and drones; branding Ukraine’s leader – and not the tyrant of Moscow – a dictator; attacking close allies with tariffs; resetting relations with Russia while it continues to invade a part of Europe.

‘Trump is ridiculous’, Greenlanders say

And threatening to take over its neighbours. Our journey ended in Greenland, top of the list of Mr Trump’s planned acquisitions.

Most people we spoke to were genuinely worried by him.

Students Aviana and Julie told us Mr Trump’s antics were alarming.

“That’s very scary actually – it seems he’s more with Russia than Ukraine. I’m really scared.”

Another passerby said Mr Trump had no right to make a play for their homeland. They said: “I think it’s ridiculous that he thinks he can just take our land. We don’t have the resources to fight against the USA.”

Jurgen Boassen has become a well-known figure for having opposing views – he is outspokenly pro-Trump.

“I think he is a great man who wants to have peace in the world,” he told us.

‘Europe is failing’

He admits he is paid by MAGA groups in America to promote “cultural ties” and believes Greenland will gradually come around to the idea of becoming closer to America.

“I don’t care because they will realise I’m doing the good thing for Greenland. Europe is failing, Britain, Sweden, Belgium, Holland even Germany,” he said.

Wherever we travelled people seemed in shock. America used to believe helping others was good for America – keeping the peace in Europe, saving lives, or protecting the sovereignty of neighbours.

The fear is under President Trump it is just out for itself. The idea Mr Trump could carve up the world into spheres of influence with other authoritarian leaders seems plausible. If that is the case, lesser nations like Greenland may have plenty to fear.

From what we were told on our journey, Donald Trump’s America First foreign policy risks the lives of millions, the security and sovereignty of allies, and America’s own place in the world while potentially strengthening its enemies.