Arab Press

بالشعب و للشعب
Monday, Sep 15, 2025

Republicans are holding the American economy 'hostage' over the debt ceiling after rejecting Biden's offer of $3 trillion in deficit cut proposals, House Progressive Caucus says

Republicans are holding the American economy 'hostage' over the debt ceiling after rejecting Biden's offer of $3 trillion in deficit cut proposals, House Progressive Caucus says

Republicans have rejected Democratic proposals to lower the deficit. Democrats will blame them if the US defaults on the debt.
Republicans say Democrats are unwilling to negotiate spending cuts. House Democrats have flipped the switch.

The US could have only until June 1 to raise the debt ceiling to avoid a default that would rock the global economy, Republicans have refused to raise the debt limit unless they can cut spending. House Democrats are blaming their Republican colleagues for rejecting Democratic proposals to reduce the deficit.

"The Republicans rejected $3 trillion worth of policies that could have gone towards deficit reduction," Rep. Pramila Jayapal, chair of the House Progressive Caucus, said at a Wednesday press conference after speaking with President Biden Tuesday night.

On Tuesday, Rep. Matt Gaetz of the Freedom Caucus told Joseph Zeballos-Roig, a Semafor reporter, that he and his conservative colleagues "don't feel like we should negotiate with our hostage."

"Who exactly is that hostage?" Jayapal asked. "It's the American economy. It's seniors, parents, kids, veterans, people with disabilities, teachers, the poorest Americans."

"We will continue to reject and call out this reckless hostage-taking from extreme MAGA Republicans," she emphasized.

The proposals the GOP rejected included ending oil subsidies, closing tax loopholes, negotiating down more Medicare drug prices a billionaire minimum tax, a corporate global minimum tax, and "raising taxes on large corporations from the outrageous cut that Trump instituted — all together $3 trillion in savings," Jayapal said.

The GOP-controlled House narrowly passed a bill in late April that would raise the debt ceiling by $1.5 trillion, slash $4.5 trillion from the federal budget, increase work requirements on social welfare programs, ban student loan-forgiveness programs, and roll back earmarked pandemic spending.

President Joe Biden has vowed to veto the bill, and McCarthy has refused any short-term debt-limit increase to give negotiations more time. Despite so-called "productive" meetings, the two have failed to negotiate deficit reductions that would satisfy Republicans.

If they can't come to an agreement about how to lower the deficit and get Republicans to raise the debt ceiling, 2.6 million Americans could lose their jobs. Americans could each lose $20,000 in retirement savings and see their mortgage, small business, and private student-loan payments surge.

"Republicans want you to believe that there are only two choices: their extreme bill that would make you pay for tax cuts for the wealthiest, or default that pushes our economy into catastrophe," Jayapal added.

"Don't buy it. There are other options," she insisted, from Republicans joining Democrats in a discharge petition to force a vote to raise the debt ceiling, Biden invoking the 14th Amendment to override the debt ceiling, to Republicans agreeing to "any—any—revenue-raising policies so that it's the wealthiest and big corporations reducing the deficit by paying their fair share."

With Republicans rejecting Democratic proposals, Jayapal said, "If we default and if we crash the economy, there is only one person to blame and that is the Speaker of the House Kevin McCarthy."
Comments

Oh Ya 2 year ago
Countries are dumping their TBills so who exactly is going to buy this debt. You can only kick the can down the road for so long before you have to face facts .the US owes 32 trillion plus 180 trillion in unfunded liabilities. The US is bankrupt folks

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Kuwait opens bidding for construction of three cities to ease housing crunch.
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
Could AI Nursing Robots Help Healthcare Staffing Shortages?
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Tether Expands into Gold Sector with Profit-Driven Diversification
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
Israeli Airstrike in Yemen Kills Houthi Prime Minister
After the Shock of Defeat, Iranians Yearn for Change
YouTube Altered Content by Artificial Intelligence – Without Permission
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
×