House Passes Debt Limit that would Cut Domestic Spending

On Wednesday, April 26, 2023, the House of Representatives passed H.R. 2811, the Limit, Save, Grow Act of 2023 on a Republican-only party-line vote. The bill, reflective of House Republican spending priorities, would raise the debt ceiling while cutting discretionary spending for Fiscal Year 2024 (which is currently under debate) and capping domestic spending growth at 1 percent over the next decade. Upon passage of the bill, Speaker of the House Kevin McCarthy remarked, “House Republicans just delivered a plan that will address the country’s debt crisis. Our conference came together to pass the only plan in Washington that will tackle the debt ceiling, stop excessive federal spending and inflation, and put our country back on track for sustained economic growth.”

The passage of the legislation represents an opening bid from the House Majority, but will face opposition from the Senate and a veto threat from President Biden. While lifting the debt ceiling is an urgent priority, President Biden has urged lawmakers not to tie it to discretionary spending cuts.

In response to the legislation, Secretary of Education, Miguel Cardona, issued a Fact Sheet that outlines the impact of potential cuts to key education programs, accompanied by a state-by-state breakdown of those cuts. Within special education, the U.S. Department of Education estimates that “Under the proposal, as many as 7.5 million children with disabilities would face reduced supports—a cut equivalent to removing more than 48,000 teachers and related services providers from the classroom.”

To learn more about H.R. 2811, go here.

To view the U.S. Department of Education Fact Sheet go here.