Saudi Press

Saudi Arabia and the world
Sunday, Jun 22, 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
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Black Box Recovered from Air India Crash Site
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Syria to Reconnect to Global Economy After 14 Years of Isolation
Israel Confirms Arming Gaza Clan to Counter Hamas Influence
Global News Roundup: From Ukraine's strategic military strikes and Russia's demands and Tensions Escalate in Ukraine, to serious legal issues faced by Britons in Bali and Trump's media criticism, the latest developments highlight a turbulent landscape
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
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
×