Republicans Call For Firmer For Line On Debt Limit Following Bank Collapses

Senior Republicans have suggested that the failures of Silicon Valley Bank and Signature Bank are evidence that a firmer line must be taken on government spending in debt ceiling negotiations.

• Punchbowl News reports: “...senior GOP lawmakers are leaning into their plans to demand spending cuts in return for raising the nation’s borrowing limit. The Republicans [argued] the same factors that led to the failure of SVB and Signature Bank necessitate urgency in reducing government spending.”
• House Budget Committee Chair Jodey Arrington (R-TX), said on the debt limit fight: “This is the best time to do it. That interest rate pressure that is creating some risk in the banking industry is a result of the inflation that has been induced by the massive amounts of spending.”
• Rep. John Rose (R-TN), of the House Financial Services Committee: “The very problems that created the stress in the banking sector, I think are also at play in the debt ceiling increase issue, which is just runaway government spending.”
• Rep. Carlos Gimenez (R-FL) said, “the vast majority, if not the entire conference” wants to rein in “out of control spending.”