Saudi Press

Saudi Arabia and the world
Monday, Jun 02, 2025

Republicans are holding the American economy 'hostage' over the debt ceiling after rejecting Biden's offer of $3 trillion in deficit cut proposals, House Progressive Caucus says

Republicans are holding the American economy 'hostage' over the debt ceiling after rejecting Biden's offer of $3 trillion in deficit cut proposals, House Progressive Caucus says

Republicans have rejected Democratic proposals to lower the deficit. Democrats will blame them if the US defaults on the debt.
Republicans say Democrats are unwilling to negotiate spending cuts. House Democrats have flipped the switch.

The US could have only until June 1 to raise the debt ceiling to avoid a default that would rock the global economy, Republicans have refused to raise the debt limit unless they can cut spending. House Democrats are blaming their Republican colleagues for rejecting Democratic proposals to reduce the deficit.

"The Republicans rejected $3 trillion worth of policies that could have gone towards deficit reduction," Rep. Pramila Jayapal, chair of the House Progressive Caucus, said at a Wednesday press conference after speaking with President Biden Tuesday night.

On Tuesday, Rep. Matt Gaetz of the Freedom Caucus told Joseph Zeballos-Roig, a Semafor reporter, that he and his conservative colleagues "don't feel like we should negotiate with our hostage."

"Who exactly is that hostage?" Jayapal asked. "It's the American economy. It's seniors, parents, kids, veterans, people with disabilities, teachers, the poorest Americans."

"We will continue to reject and call out this reckless hostage-taking from extreme MAGA Republicans," she emphasized.

The proposals the GOP rejected included ending oil subsidies, closing tax loopholes, negotiating down more Medicare drug prices a billionaire minimum tax, a corporate global minimum tax, and "raising taxes on large corporations from the outrageous cut that Trump instituted — all together $3 trillion in savings," Jayapal said.

The GOP-controlled House narrowly passed a bill in late April that would raise the debt ceiling by $1.5 trillion, slash $4.5 trillion from the federal budget, increase work requirements on social welfare programs, ban student loan-forgiveness programs, and roll back earmarked pandemic spending.

President Joe Biden has vowed to veto the bill, and McCarthy has refused any short-term debt-limit increase to give negotiations more time. Despite so-called "productive" meetings, the two have failed to negotiate deficit reductions that would satisfy Republicans.

If they can't come to an agreement about how to lower the deficit and get Republicans to raise the debt ceiling, 2.6 million Americans could lose their jobs. Americans could each lose $20,000 in retirement savings and see their mortgage, small business, and private student-loan payments surge.

"Republicans want you to believe that there are only two choices: their extreme bill that would make you pay for tax cuts for the wealthiest, or default that pushes our economy into catastrophe," Jayapal added.

"Don't buy it. There are other options," she insisted, from Republicans joining Democrats in a discharge petition to force a vote to raise the debt ceiling, Biden invoking the 14th Amendment to override the debt ceiling, to Republicans agreeing to "any—any—revenue-raising policies so that it's the wealthiest and big corporations reducing the deficit by paying their fair share."

With Republicans rejecting Democratic proposals, Jayapal said, "If we default and if we crash the economy, there is only one person to blame and that is the Speaker of the House Kevin McCarthy."
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
The Daily Debate: The Fall of the Dollar — Strategic Reset or Economic Self-Destruction?
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
Saudi-Spanish Business Forum Commences in Riyadh
Saudi Arabia and Spain Sign MoU to Boost SME Sectors
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
A Chinese company made solar tiles that look way nicer than regular panels!
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
Saudi Arabia Emerges as Global Tech Magnet with U.S. Backing and Trump’s Visit
This was President's departure from Saudi Arabia. The Crown Prince personally escorted him back to the airport.
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
Trump takes a blow torch to the neocons and interventionists while speaking to the Saudis
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
×