Congress is set to blow past its April 15 target date for a joint budget resolution, which has been the rule rather than the exception. The delay comes amid partisan divide, with Democrats pushing for major spending increases and Republicans calling for significant cuts.
In his first major test as Speaker, Kevin McCarthy secured a notable win by successfully passing his debt limit and spending cuts package in the House. The bill includes $1.5 trillion in cuts over the next decade and requires Congress to balance the budget within 10 years.
For several decades the president's budget has been described as “dead on arrival” in Congress, with both budget watchers and members of Congress acknowledging that the proposal is largely symbolic and unlikely to be passed as written.
Looking ahead, President Biden and congressional Democrats are fully cognizant that their ambitious agenda will have to be pared back in order to get any meaningful legislation through Congress. This includes a potential infrastructure bill, which could be scaled back significantly in order to win Republican support.
The House voted 217 to 215 to pass the Limit, Save, Grow Act of 2023, with all but four Republican members voting in favor. The bill includes significant cuts to non-defense spending and would require Congress to balance the budget within 10 years.
House Republicans narrowly passed a bill to raise the debt ceiling while cutting spending by nearly 14 percent over a decade. The bill is expected to face significant opposition in the Senate, where Democrats hold a slim majority.
Democratic and Republican staff negotiators spent the weekend and a good part of Monday trying to get on the same page in debt limit talks. However, the talks ultimately broke down amid deep divisions over spending and revenue.
The nonpartisan Congressional Budget Office issued a new estimate of how long the Treasury Department can sustain its extraordinary measures to avoid hitting the debt ceiling. The report estimates that the department will be able to avoid default until October or November, giving Congress more time to negotiate a deal.
The House voted Wednesday to pass a bill raising the nation's debt ceiling, after days of wrangling Republican lawmakers to unify behind the bill. The bill includes significant cuts to non-defense spending and would require Congress to balance the budget within 10 years.
Overall, the delay in the budget resolution vote highlights the deep partisan divide that continues to plague Congress. While both parties agree on the need to address the nation's fiscal challenges, they remain deeply divided over the best way to do so. As a result, it is unlikely that any major fiscal legislation will be passed in the near future.
