those extraordinary measures could be exhausted as early as July unless lawmakers take action to avert an historic default, which would have catastrophic consequences for the U.S. economy.
The legislation claws back unspent federal COVID-19 relief funds, rescinds some of the $80 billion for the Internal Revenue Service approved through the Inflation Reduction Act and imposes stricter work requirements on recipients of food stamps and Medicaid. The slim margins for Republicans in the House complicate the path to their proposal's passage, and McCarthy can only afford four defections from his GOP colleagues in order for the debt limit bill to clear the lower chamber. The legislation is dead on arrival in the Senate, where Democrats hold a 51-seat majority and 60 votes are needed for measures to advance.