President Joe Biden will likely need a substantial number of Democrats to back the bill. Several conservatives are decrying the deal as a betrayal of the Republican debt package passed by the House last month.
During a conference-wide conference call Saturday night, McCarthy highlighted what he sees as GOP victories in the agreement. Administration officials are expected to brief House Democrats on Sunday afternoon.
The budget agreement would hike the debt limit through January 2025, teeing up another potential standoff over the nation’s borrowing cap in the months after the presidential election. The deal would keep non-defense funding roughly flat for the fiscal year that begins on Oct. 1 and slightly increase funding for those programs by 1 percent in 2025, a source familiar with the framework said.
Rep. Dusty Johnson (R-S.D.), a close McCarthy ally, disputed that characterization of how the legislation would handle domestic spending, however. As conservatives tweeted their displeasure with the emerging details, Johnson said Saturday night that non-defense funding would be closer to the fiscal 2022 levels Republicans had originally sought for the coming fiscal year.
Republicans initially demanded $130 billion in cuts to government funding in fiscal 2024, in addition to a decade of strict budget caps. The budget bargain struck by Biden and McCarthy would limit spending for two years, then set non-enforceable funding targets after 2025.
The deal would also cap military funding at Biden’s budget request, at $886 billion, about a 3.5 percent increase. Veterans’ medical care would also match the president’s request, at $121 billion in fiscal 2024.
There were rumblings of a revolt against the agreement by House Freedom Caucus members after it was released. They likely couldn’t kill the agreement on their own, but they can make McCarthy’s life miserable depending on how far they take their displeasure.
“No one claiming to be a conservative could justify a YES vote,” Rep. Bob Good tweeted Saturday night.
That view was not unanimous within the group. But GOP Reps. Jim Jordan and Warren Davidson, both Freedom Caucus members, liked what they saw of the deal.
And McCarthy, speaking to reporters, touted that the deal had “historic reductions in spending,” no new taxes, no new government programs and would make reforms to “lift people out of poverty,” referring to the adjusted work requirements.
The White House will likely struggle to sell Democrats on new work requirements for SNAP, formerly known as food stamps, and federal aid through the Temporary Assistance for Needy Families program. In a win for the administration, the budget agreement includes no new work requirements for Medicaid, preserves clean energy tax incentives included in Democrats’ signature climate law last year and won’t touch Biden’s plan to cancel up to $20,000 of student debt for tens of millions of Americans.
The deal does, however, codify Biden’s plan to end the ongoing freeze on monthly student loan payments and interest at the end of the summer, while clawing back a portion of Democrats’ new IRS funding and yanking back billions of dollars in unspent Covid relief.
Jordain Carney and Jennifer Scholtes contributed to this report.
