Top Republican Vows Vote This Week On US Debt Limit

The top congressional Republican said on Sunday he will hold a vote this week on raising the US debt ceiling and curbing spending, as he accused President Joe Biden of ducking negotiations ahead of a looming default.

House Speaker Kevin McCarthy and Biden have jousted for weeks over an exit to the impasse. The president has called for a "clean" bill to increase borrowing with no strings attached, while the Republican demands cuts to federal spending as a way to trim the nation's US$31 trillion debt.

While the White House has warned that the Republican plan is akin to "economic hostage-taking" and McCarthy blames Biden for "bumbling" towards a default, a deadline is rapidly approaching; the US government risks defaulting on payment obligations by July or even earlier, with profound implications for the US and global economies.

"We will hold a vote this week, and we will pass it and send it to the Senate," McCarthy told Fox News talk show "Sunday Morning Futures," expressing alarm that Biden "won't even negotiate for more than 80 days" since the political adversaries met for opening talks in February.

"He needs to show leadership and come to the negotiating table, instead of put us in default," McCarthy said of Biden. "This is risky, what he's doing, he's threatening the markets."

Biden has warned that the Republican plan – which would roll spending back to 2022 levels, impose a one percent cap on future spending and repeal "green" tax credits, in exchange for a US$1.5 trillion debt limit increase into next year – would result in "huge cuts" to programmes serving millions of Americans.

Even if McCarthy gets his proposal passed by the House – no sure thing, as some Republicans are wincing over the plan's authorisation of more government debt – it will be dead on arrival in the US Senate, where Biden's Democrats hold a narrow majority.

The standoff helps set the stage for the 2024 presidential election, with Biden likely to soon announce his re-election bid and former president Donald Trump leading in the race to be the Republican nominee. (AFP)