Gaetz reemerges as a thorn in McCarthy’s side as debt ceiling fight escalates

Firebrand Rep. Matt Gaetz (R-FL) is reemerging as a thorn in House Speaker Kevin McCarthy’s (R-CA) side as debt ceiling negotiations heat up.

Gaetz, who has fought with McCarthy in the past, recently threatened to derail the House GOP debt limit plan if tighter work requirements are not enacted, a demand that could complicate the speaker’s difficult math as he squares off with the Democrats.

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“An essential element to get my vote for any increase in the debt limit would be enacting work requirements starting in fiscal year 2024 — NOT 2025 as the legislation is currently written. Otherwise, it’s a no vote from me,” Gaetz tweeted.

Gaetz previously joined the Republican rebels who worked to tank McCarthy’s bid for the speakership. He eventually voted “present,” which paved the way for McCarthy’s historically chaotic ascension.

In the time since, Gaetz has praised some of McCarthy’s overtures to the right flank of his caucus, highlighting concessions made to the holdouts.

In February, Gaetz praised McCarthy’s performance for passing conservative legislation and increasing the pressure on the Biden administration.

“I would give Speaker McCarthy an ‘A’ for his work so far at the beginning of the 118th Congress, and we are in possession of far more tools that will help us get to those policy outcomes that we want,” Gaetz said at the time.

But his threat to scuttle the debt ceiling plan marks a return to embarrassing the speaker right as McCarthy prepares for the most important fight of his tenure as the top Republican in the House. His fresh demands on the debt ceiling could risk alienating moderates as McCarthy scrambles to balance the diverse ideological interests of his caucus.

One of the key proposals in the GOP debt limit plan is to beef up work requirements for an array of social safety programs. For instance, it would require able-bodied adults between 18 and 55 to work at least 20 hours a week or meet other eligibility requirements to get food stamps for more than three months out of every three years.

Another example is that the policy would mandate some types of Medicaid beneficiaries to net a minimum monthly income, conduct some form of community service, or do 80 hours a month in an employment program.

Work requirements were top of mind for scandal-plagued Rep. George Santos (R-NY), who initially described himself as a “hard no” before his office declared he is still “undecided.”

The congressman also insisted moving up the time frame for enacting the stricter work requirements is critical to ensure those reforms go through.

“What I’ve seen after seven years in Congress is that the things that we’re serious about, we get going on those immediately,” he said. “And the things that are unserious are delayed to some future budgetary hearing.”

Given the GOP’s wafer-thin majority in the lower chamber, the party can only afford to lose four votes. Many Republicans have signaled support already, including more centrist members of the caucus, such as Rep. Mike Lawler (R-NY), and more conservative ones, such as Rep. Bob Good (R-VA).

But there are a handful of holdouts who could imperil McCarthy’s negotiating leverage with President Joe Biden. McCarthy will have to win over Reps. Nancy Mace (R-SC), Tim Burchett (R-TN), Eli Crane (R-AZ), Andy Biggs (R-AZ), Thomas Massie (R-KY), and Chip Roy (R-TX), sources told Politico.

In addition to the work requirements, the plan calls for returning funding for government agencies to fiscal 2022 levels and capping annual increases to about 1% a year, with a carve-out for the Pentagon. It would also scrap Biden’s student loan forgiveness plan, cut bolstered IRS funding, and rescind unused COVID-19 funds.

Biden and Democrats have already declared opposition to the proposal and demanded a clean bill to lift the nation’s borrowing authority without any strings attached.

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“I’m working to make sure that those cuts aren’t aspirational over some 10-year period, but that they are as immediate as possible,” Gaetz said. “And to everyone’s great credit on the Republican team, there are some real pro-growth strategies that we’re demanding as a part of that increase in the debt limit.”

McCarthy estimates his plan will save $4.5 trillion over the next decade. The proposal will raise the debt limit by $1.5 trillion or until March 31, 2024, whichever is first, in exchange for those cuts. The government hit the $31.4 trillion debt ceiling in January and is projected to have until between June and August until that will affect funding.