Republicans Propose Steep Cuts in Exchange for Raising Debt Ceiling, Threaten Default

House Republicans unveiled a bill that raises the debt ceiling for now but cuts $4 trillion in spending over 10 years, including limiting Medicaid and food stamps benefits.
The McCarthy plan faces significant opposition from Senate and House Democrats as well as some moderate House Republicans but emboldened some conservatives.
The Biden administration criticized the plan as an unacceptable "ransom demand" that threatens economic recovery and manufacturing jobs.
Failure to raise the debt ceiling risks a catastrophic default, but Republicans see debt limit votes as a way to force spending cuts and gain political leverage.
McCarthy is struggling to gain enough Republican support to pass the bill in the House, indicating possible revisions to satisfy the caucus.