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"It's outrageous that Trump and House Republicans are threatening to withhold recovery aid if their conditions aren't met," said a leader in the Working Families Party.
The deputy national director of the Working Families Party had sharp words for a group of House Republicans and President-elect Donald Trump, who, according to Politicoreporting published Monday, discussed tying fire relief for California to the politically charged issue of increasing the debt ceiling.
The reporting comes as California continues to battle fires in the Los Angeles area that have consumed tens of thousands of acres and left over 20 people dead. The scale of the destruction could make them, collectively, the costliest wildfire disaster in U.S. history, a climate scientist told the Los Angeles Times last week.
"The Palisades wildfires have destroyed homes, schools, and businesses and left thousands of families without a roof over their heads. It's outrageous that Trump and House Republicans are threatening to withhold recovery aid if their conditions aren't met," said Working Families Party deputy national director Joe Dinkin in a statement Monday.
"Every Republican should be on the record denouncing this abominable plan," he added.
Per Politico, nearly two dozen House Republicans attended a dinner at Trump's Mar-a-Lago Club over the weekend where the option was discussed.
Speaker Mike Johnson (R-Fla.), who was not a part of the conversation but did later confirm the conversation, must deal with the looming debt cliff, which is set to be reached sometime in mid-January, and he faces obstacles within his own party. In December, fractures appeared in the GOP when fiscal hawks refused to back legislation that Trump supported that would have raised the debt limit.
Johnson has also said he would try to lift the debt limit by including it in a reconciliation bill full of President-elect Donald Trump's legislative priorities, though this could run afoul with those same fiscal hawks. Some House Republicans reportedly brought up the pitfalls of this option during discussions at Mar-a-Lago over the weekend.
Of the potential move to link fire relief to the debt ceiling, Politico reported: "The Sunday night discussions prove Republicans are desperately looking for a plan before the nation is due to exhaust its borrowing authority—though Democrats and some Republicans are sure to balk at the prospect of linking disaster relief dollars to a politically charged exercise like extending the debt limit."
Congress recently passed a spending bill that included funding for natural disaster relief, but scope of the destruction in California has some officials wondering if more may be needed, Politico reports.
Treasury Secretary Janet Yellen implored Congress to "protect the full faith and credit of the United States" or face imposition of "extraordinary measures."
U.S. Treasury Secretary Janet Yellen warned Congress on Friday that—absent imminent action to raise or suspend the nation's debt limit—her agency would likely have to take "extraordinary measures" as soon as January 14 to avert hitting the debt ceiling.
"As you know, the debt limit is the total amount of money that the United States government is authorized to borrow to meet its existing legal obligations, including Social Security and Medicare benefits, military salaries, interest on the national debt, tax refunds, and other payments," Yellen wrote in a letter sent to congressional leaders. "In June 2023, the Fiscal Responsibility Act of 2023 was enacted, suspending the debt limit through January 1, 2025."
DEBT LIMIT: New letter this afternoon from Treasury Secretary Janet Yellen projects debt limit will be reached a bit later than the earlier projection of Jan. 1; new limit to be reached between Jan 14-23 at which point Treasury will have to take extraordinary measures
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— Jane Norman (@janenorman.bsky.social) December 27, 2024 at 1:53 PM
Yellen continued:
On January 2, 2025, the new debt limit will be established at the amount of outstanding debt subject to the statutory limit at the end of the previous day. However, on January 2, the outstanding debt subject to the limit is projected to decrease by approximately $54 billion, mostly due to a scheduled redemption of nonmarketable securities held by a federal trust fund associated with Medicare payments. As a result, the debt is currently projected to temporarily decrease, and accordingly, Treasury does not expect that it will be necessary to start taking extraordinary measures on January 2 to prevent the United States from defaulting on its obligations. Treasury currently expects to reach the new limit between January 14 and January 23, at which time it will be necessary for Treasury to start taking extraordinary measures.
"I respectfully urge Congress to act to protect the full faith and credit of the United States," Yellen added.
Recent past extraordinary measures—which are invoked by the U.S. Treasury Department to prevent a binding debt limit—have included the declaration of a debt issuance suspension period, suspension of new investments, and suspension of reinvestment of certain securities.
Yellen's admonition comes less than one month before Republican President-elect Donald Trump takes office. Both Trump and Yellen have called for the elimination of the debt ceiling. The end-of-year spending bill signed into law last week by U.S. President Joe Biden did not include Trump's demand to raise or suspend the debt ceiling.
According to USDebtClock.org, the nation is currently more than $36.2 trillion in debt—or more than $107,000 for each of the country's more 346.3 million people.
"Nearly 60% of mandatory spending is for Medicare and Social Security," noted one expert. "If they don't touch those, they'd have to cut Medicaid to the bone."
With a potential government shutdown just hours away, House Republican leaders displayed a slide during a closed-door GOP conference meeting on Friday showing a draft agreement proposing $2.5 trillion in net mandatory spending cuts in exchange for raising the U.S. debt ceiling by $1.5 trillion at some point next year.
The slide was seen as further confirmation that Republicans are seriously eyeing cuts to Social Security, Medicare, Medicaid, and federal nutrition assistance—programs that fall under the mandatory spending category.
Though by law Social Security cannot be cut in the reconciliation process that Republicans are planning to use to bypass the Senate filibuster and Democratic opposition in the upcoming Congress, other key programs including Medicare and Medicaid could be vulnerable to the GOP's massive proposed austerity spree.
"The ONLY WAY to cut $2.5 trillion in spending is by slashing Social Security, Medicare, and/or Medicaid," the progressive advocacy group Social Security Works (SSW) wrote on social media in response to the slide. "Republicans want to steal our benefits to pay for their billionaire tax cuts."
Bharat Ramamurti, former deputy director of the White House National Economic Council, wrote that the slide "is a Republican commitment to cut Medicare, Social Security, or veterans' benefits (all to make way for new tax cuts for the rich)."
"There's no way to make this math work otherwise," he added. "Their promise is to cut $2.5 trillion in mandatory spending. Nearly 60% of mandatory spending is for Medicare and Social Security. If they don't touch those, they'd have to cut Medicaid to the bone."
Sen. Elizabeth Warren (D-Mass.) warned that the draft agreement means "Republicans are plotting to cut healthcare for seniors and veterans to grease the wheels for tax cuts for giant corporations and billionaires like Elon Musk."
For weeks, Republicans have been discussing potential cuts and sweeping changes to Medicaid and the Supplemental Nutrition Assistance Program (SNAP)—including the addition of new work requirements—to help pay for a fresh round of tax cuts that would largely benefit the richest Americans and large corporations.
Republicans working with Musk and Vivek Ramaswamy—the billionaire co-chairs of the soon-to-be-created Department of Government Efficiency—have also signaled that Social Security and Medicare cuts are on the table even after President-elect Donald Trump campaigned on protecting the programs.
"Republicans have made their plan for the new year crystal clear: Ram through massive tax giveaways for the ultra-wealthy and corporations, and pay for them by shaking down programs and agencies that working families rely on," Groundwork Collaborative executive director Lindsay Owens wrote in a Rolling Stoneop-ed on Friday. "And they're putting unelected and unaccountable oligarchs—Musk and Ramaswamy—in charge of deciding how much pain Americans will have to tolerate so that the rich can get richer."