House GOP Proposes $4 Trillion Debt Ceiling Raise

House Republicans have unveiled a proposal to raise the U.S. debt ceiling by $4 trillion, incorporating it into a broader legislative package advancing former President Trump's tax agenda. This strategy aims to bypass Democratic demands for concessions tied to debt limit increases but may impose tight deadlines for passing the comprehensive tax bill. Treasury Secretary Scott Bessent has urged Congress to act by July to prevent a government default, warning that cash reserves and extraordinary measures could be depleted by August during a congressional recess. A key point of contention exists between the House and Senate Republican plans, with the Senate proposing a $5 trillion increase to extend the debt ceiling through the midterm elections. Internal GOP disagreements, including debates over Medicaid reforms and proposed savings, pose challenges to party unity on this expansive package. Financial markets reacted positively to the announcement, with increases in major stock indices and cryptocurrencies like Bitcoin and Ethereum, as investors anticipate continued government spending and potential Federal Reserve liquidity injections fueling risk assets.