"Debt Ceiling Dilemma: McCarthy's Plan and Centrists' Fallback"

US House Speaker Kevin McCarthy plans to introduce a bill to raise the nation's debt ceiling by $1.5tn, which includes cutting the federal budget to 2022 levels and capping spending growth at 1% per year in exchange for raising the $31.4tn limit. The White House has reiterated its position that Congress should raise the debt limit without conditions. The US federal government has already reached its borrowing limit and is expected to hit a point where it will no longer be able to meet its financial obligations. Even if McCarthy's proposal were to pass the House, it would be unlikely to find support in the Democratic-controlled Senate.