The White House stood firm Tuesday on its demand for an uncompromised debt-ceiling increase, pledging that President Joe Biden will veto Republicans' proposal if it should, against long odds, pass both chambers of Congress.
In an Office of Management and Budget statement, the Biden administration said it "strongly opposes" the legislation, which cuts discretionary spending and repeals vital aspects of the Inflation Reduction Act.
The $1.5 trillion Limit, Save, Grow Act of 2023 also repeals new Internal Revenue Service funding, caps spending at 1% per year, ends the student-loan forgiveness program, and imposes welfare work requirements.
"This legislation would force severe cuts to education (including for students with disabilities), food safety inspections, rail safety, healthy meals for seniors, research on cancer and other diseases, border security, public safety, and veterans' medical care," the statement read.
"Altogether, this legislation would not only risk default, recession, widespread job loss, and years of higher interest rates, but also make devastating cuts to programs that hard-working Americans and the middle-class count on."
The policy declaration also contrasts the Republican proposal to Biden's "vision for the economy," which involves greater investment, lowers costs for families, and the reduction of the deficit by raising taxes on the rich, according to Biden and the Democrats.
Even with moderate Sen. Joe Manchin, D-W.Va., praising the Republican bill, Senate Majority Leader Chuck Schumer, D-N.Y., said the bill will be dead on arrival in the upper chamber.
The bill is expected to pass the Republican-controlled House this week, House Speaker Kevin McCarthy, R-Calif., told Fox News' "Sunday Morning Futures" on Sunday. He has been pushing for a vote this week, despite some signs of growing resistance even within his own ranks.
"Vote on it this week? Yes. This week!" McCarthy told reporters in the U.S. Capitol. "If there's any change, I'll be sure to tell you. But right now, we’re moving forward."
"The president told Leader Schumer and [House Minority] Leader [Hakeem] Jeffries [D-N.Y.] that he was ready to have a separate negotiation over the budget once Republicans present their plan, as has been done by both parties in Congress and the White House in the past," the White House said Tuesday night.
The nonpartisan Congressional Budget Office on Tuesday said the bill would lower the federal budget deficit by $4.8 trillion over the next decade if it were to become law.
Reuters contributed to this report.