The deal between Speaker Kevin McCarthy and his conservative detractors lays a foundation for the massive spending cuts that some want, but it also sets up a daunting challenge for GOP lawmakers who want to keep the government functioning after winning control of the House.
By increasing the difficulty of reaching a bipartisan agreement on spending, it could raise the risk of a market-rattling battle over the debt limit and a partial government shutdown later this year. But first, House GOP lawmakers need to agree among themselves about what’s actually on the table.
If spending bills for the next fiscal year are capped at fiscal 2022 levels as proposed in the deal, the assumed cuts would slice over $130 billion, or 8 percent, from levels in the recently enacted omnibus spending law.
