OnPolitics: Will House Speaker Kevin McCarthy unite GOP behind plan to raise the debt ceiling?

Hi there OnPolitics readers.

As we approach the looming debt ceiling deadline, House Speaker Kevin McCarthy, R-Calif., is looking to rally House Republicans behind a plan to raise the debt ceiling tied to long sought-after spending cuts.

What we know: McCarthy said the proposal includes rolling back federal spending to fiscal year 2022 levels, limiting the growth of spending to 1% annually and establishing new work requirements for recipients of government aid.

And while McCarthy is urging all 218 House Republicans to vote to pass the plan, the proposal is not expected to survive the Democratic-held Senate.

However, it could help restart negotiations between McCarthy and President Joe Biden, who has refused to have any budget discussions with GOP lawmakers until the release of Republican plan details.

Why it matters: Without raising the debt limit, the country risks defaulting on payments, which would have national and worldwide economic consequences. If the federal government defaults on its payments, the consequences could include a stock market crash and a recession, experts say.

As of right now, the U.S. could default on its obligation as early as this summer, according to the Congressional Budget Office.