Power & Market

Kevin McCarthy Faces New House Rules and the Debt Ceiling Fight

It took 15 votes and a host of concessions to the Freedom Caucus and its allies, but Kevin McCarthy (finally) became Speaker of the House. Of course, the real length of the delay (in McCarthy’s eyes anyway) was much longer than the three days last week. Afterall, when John Boehner abruptly stepped down in 2015, McCarthy had been the heir apparent. A similar lack of support among the more hardline fiscally conservative members, however, resulted in the elevation of Paul Ryan to the top job in the House.

With Steve Scalise and Jim Jordan lurking in the prospective background, McCarthy initially talked tough: in a speech before the first vote he demanded the members loyalty, saying he’d “earned” the job.

A few embarrassing votes later, and the necessary concessions came on like a flood.

Frankly, there is a lot to like:

Apart from the fact any member may now precipitate a vote to vacate the chair, in the new House all income tax increases will now require a three fifths vote; general spending cut amendments will be allowed; no unauthorized appropriations may be increased; and, perhaps biggest of all, any increases in mandatory spending must be offset immediately by equivalent cuts.

Or, as the Washington Post put it: “The Terrorists Have Already Won.” 

Gross hyperbole aside, the now-familiar debt ceiling standoff later this summer looks set to be a big one. McCarthy has, rightly, never been trusted, and his concessions to secure the job of Speaker rendered him effectively impotent. Whatever he and his allies may think they have cooked up to get out of the debt ceiling fight, they are mistaken.

It will be a fight, or it will be his job, and if Kevin McCarthy has proven one thing over the course of his time in D.C., it is that he will do anything for power. 

Already looking ahead, Republicans and Democrats are openly mulling the parliamentary technicalities that might be exploited to avoid a government shutdown or default. A discharge petition, for example, could theoretically advance the bill directly to a vote over the objections of the Speaker.

McCarthy would no doubt be grateful. 

It had been before the Civil War that an election for Speaker took longer than it did for the 118th Congress. Should he face an attempted ouster (likely), McCarthy will make history again as the first to face a privileged motion to vacate the chair in a century.

Recognizing his predicament, some Democrats are already speaking openly of the next debt ceiling fight as an opportunity. With Biden already saying he “refuses to negotiate” and that the debt ceiling must be raised “without strings,'' Democrats seem to be banking on a repeat of the experiences of both Clinton and Obama, who benefited politically from their respective standoffs and shutdowns.

A long shot, but not unimaginable scenario given the narrow margins in the current House, is Hakeem Jeffries winding up Speaker before the year is out. There are still a number of Tuesday Group Republicans in the House, and in the event of a stalemate some of them in purple districts might be tempted to jump ship in order to save themselves.

Such political consequences are impossible to predict with any certainty, and so only time will tell. However, for their part those committed House Republicans should stick to their guns: government spending needs cutting and the debt needs reducing.

As a parting observation, the revolution continues to eat its children: Just as Gingrich came to be viewed as too willing to compromise by his own protégés, such as John Boehner, Boehner in turn was forced out by his own more hard-edged newer colleagues, like Jim Jordan – who, surprisingly, threw his critical support behind McCarthy in his final bid.

In an alternate universe, Jim Jordan headed the conservative opposition to McCarthy in his bid for Speaker, and the California Republican never got to move his things back into the Speaker’s office he had presumptively occupied.

As things stand, the Kevin McCarthy of this universe shouldn’t make himself too comfortable.

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