WASHINGTON (Archyde.com) – Moderate Republican Rep. Brian Fitzpatrick will join Democratic Rep. Josh Gottheimer in a bipartisan group on Thursday to propose a new solution to the federal debt ceiling. clarified. The current $31.4 trillion debt ceiling will be replaced from an absolute amount to a percentage of gross domestic product (GDP).
The federal government reached its maximum borrowing limit on Monday, prompting the Treasury Department to implement special measures to temporarily raise funds. The ministry warned that even with the special measures, the financial resources would be exhausted by early June and the debt might not be paid.
President Biden has previously said he would not negotiate on raising the limit, but on Wednesday he said he would discuss it with Republican House Speaker McCarthy.
Under these circumstances, Fitzpatrick told Fox News that although McCarthy will lead talks with the White House over the debt ceiling, he will also work with Gottheimer and others to “flesh out” the new proposal. Says it’s in progress. “We are trying to present a solution that can be bridged,” he said.
According to Fitzpatrick, the government is currently working on a mechanism that will force a cut in the size of the federal budget if the federal government’s debt exceeds a certain level as a percentage of GDP. No specific ratio was specified.
