Following months of negotiation and just days before a potential default on the nation's $31.4 trillion debt, the White House and House Republicans announced over the weekend that they reached a tentative agreement to raise the national debt limit.
Both the House and Senate must still vote to pass the Fiscal Responsibility Act of 2023, which will require assembling a coalition of Democrats and Republicans in both chambers, as at least 60 House Republicans have already indicated they plan to vote against the package and many progressive Democrats have suggested similar opposition.
The House is expected to vote on the package as early as tomorrow, in keeping with rules adopted earlier this year to allow 72-hours for lawmakers to review legislation. The Senate will follow with just days to spare before the June 5 deadline announced by U.S. Treasury Secretary Janet Yellen of when the government would no longer be able to meet all financial obligations (the debt ceiling had officially been reached in January, but the Treasury Department implemented "extraordinary measures" to avert a default since that time).
The agreement represents a compromise from the Limit, Save, Grow Act of 2023, which narrowly passed the House in April on a 217-215 vote. That legislation called for raising the debt limit by an additional $1.5 trillion or suspend it through March 31, 2024. It would have also capped fiscal year 2024 discretionary spending at $1.47 trillion (representing an 8% cut from this year), along with rescinding unspent COVID-19 relief funds, repealing numerous provisions of the Inflation Reduction Act (IRA), expanding Medicaid work requirements, and preventing the cancellation of student loans. The Biden Administration issued a Statement of Administration Policy that it would veto the bill should it be passed by Congress.
Ultimately, the agreement reached this weekend includes one of the largest ever rescissions of previously appropriated federal spending. This includes roughly $28 billion in unspent COVID-19 relief funding across the six major legislative packages enacted in response to the pandemic. Democrats on the House Appropriations Committee released a memo last week warning against the cuts, pointing to roughly $80 billion in unobligated funds ($3 billion of this is in the Provider Relief Fund).
Argentum Advocates are invited to join us for our monthly policy briefing on Wednesday, May 31 at 2:00 p.m. ET to learn more about the debt limit deal's impact on senior living, along with an update on our priority legislation and regulations impacting the industry.
This session will also feature a special presentation on how senior living communities can help support our efforts in telling the story of senior living through visits with lawmakers and grassroots political events in senior living communities. Brian Doherty, President and CEO of the Massachusetts Assisted Living Association (Mass-ALA) and Diane Macheers, Vice President of Corporate Communications at The Ridge Senior Living, will share their perspectives as an Argentum State Partner and a senior living operator hosting events for lawmakers.
Argentum Advocates Member Briefing
Wednesday, May 31, 2023
2:00 PM ET
Argentum Advocates are invited to these exclusive sessions to hear directly from Argentum’s federal lobbyists on our current federal and state public policy efforts. This session is open only to members of Argentum Advocates. Thank you for your participation in Argentum Advocates. We look forward to seeing you tomorrow!
