House Minority Leader Hakeem Jeffries, D-N.Y., has expressed openness to freezing spending at current levels as part of a potential debt ceiling deal. But, the proposal, supported by President Joe Biden, is expected to face resistance from liberals within Jeffries' own Democratic Caucus, according to The Hill.
Jeffries, speaking to reporters outside the Capitol on Monday, stated that "freezing spending" is a "reasonable proposal" in the search for common ground. Freezing spending refers to a policy measure that maintains current levels of government expenditure without any increases or decreases in spending.
Meanwhile, talks between Speaker Kevin McCarthy, R-Calif., and the White House have involved an offer to Republicans for a freeze in federal spending at the fiscal year 2023 levels.
The debate over spending caps has become a crucial point of contention in the high-stakes negotiations to raise the debt ceiling and avert a government default, a possibility highlighted by the Treasury Department for as early as June 1.
House Republicans previously passed a debt ceiling package in April that aimed to reduce fiscal year 2024 spending to levels seen in fiscal year 2022, amounting to an estimated $130 billion below the 2023 levels. They argue that these 2022 spending levels were in place until December, when Congress passed a major government funding bill establishing the current 2023 levels.
"It was not a big cut; it was the same money we were spending five months ago," stated Rep. Scott Perry, R-Pa., head of the Freedom Caucus. "What we're willing to accept is what we passed last month. That's why we passed it."
No agreement was reached between McCarthy and Biden during their Monday meeting at the White House, but McCarthy noted that progress had been made. Staff-level negotiations are expected to continue throughout the evening.
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