The proposal would replace Washington’s current federal debt ceiling, currently set at $31.4 trillion, with a rule that would limit debt to a portion of economic output, said Rep. Brian Fitzpatrick, a prominent Republican.
Fitzpatrick, who appeared on Fox News on Sunday with Democratic Rep. Josh Gottheimer, said House Republican Speaker Kevin McCarthy will take the lead in debt ceiling negotiations with the White House.
Both he and Gottheimer were working out the details of their proposal to help avert a crisis.
“We’re just going to offer … a possible bridge construction solution,” Fitzpatrick said.
On Thursday, the government approached its legal borrowing limit.
The Treasury Department has warned that its extraordinary cash management measures could only allow the government to pay all of its bills until early June, at which point the nation could risk defaulting on its obligations, including on its debt securities. .