Debt Ceiling 2023: GOP Changes Two Key Components to Bill for Vote Today — How They Could Impact You if it Passes
In a last-minute attempt to garner nearly universal Republican support for House Speaker Kevin McCarthy’s bill to raise the nation’s debt ceiling, McCarthy proposed two changes to the bill in time for today’s vote.
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The bill can only survive if all but four Republicans vote for it. Several detractors opposed some of the provisions. But how will the changes affect taxpayers?
GOBankingRates reported on Monday, April 24, that the proposed bill would add more stringent work requirements to collect SNAP benefits (food stamps) and would also implement work requirements for Medicaid recipients.
The new provisions introduced last night would hasten the implementation of work requirements for Medicaid recipients. A work requirement for Medicaid could lead to 2.2 million childless adults losing their healthcare coverage, according to a report from the nonpartisan Congressional Budget Office.
The new bill also eliminates the proposed repeal of tax breaks for biofuels like ethanol. Currently, producers get a tax credit of up to 8 cents per gallon on ethanol blends. Currently, the credit is set to expire at the end of 2026.
The tax credit has been in effect for decades and it’s not the first time it’s on the chopping block in budget debates. The subsidies largely help large U.S. oil producers such as Chevron, BP and Exxon.
According to the Renewable Fuels Association, the ethanol industry contributed more than $57 billion to the U.S. Gross Domestic Product (GDP) in 2022 and provided more than 78,800 jobs across the U.S. The tax credit incentivizes producers to create ethanol in quantities exceeding federal minimum requirements.
Not only would the repeal set back the country’s steps toward clean energy generation, but it could raise gas prices for consumers. The American Council on Renewable Energy released a statement saying that the repeal would hurt the U.S. economy and climate goals.
Rep. Nancy Mace (R-S.C.), said, “With inflation as high as it is, cost of goods being as high as it is — the last thing we want to do is make energy cost more.”
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It’s unclear if the changes will result in enough Republican support for the bill to pass. The vote to raise the debt ceiling may occur on Wednesday, April 26, but could be postponed in an effort for McCarthy to garner more support from his Republican colleagues.
One Republican leadership aide told CNN that things are “moving in the right direction.”
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This article originally appeared on GOBankingRates.com: Debt Ceiling 2023: GOP Changes Two Key Components to Bill for Vote Today — How They Could Impact You if it Passes
