McCarthy struts to victory as Dems bemoan 'hostage-taking': 5 takeaways on the debt ceiling deal

Republican Kevin McCarthy shepherding the debt limit deal through the House is a decisive policy and political win that could give the speaker a much-needed adrenaline rush in the coming months.

The "Fiscal Responsibility Act" passed by a convincing 314-117 vote-margin in the House on Wednesday, muting the voluble objections from hard-line fiscal hawks within the GOP ranks who threatened a mutiny.

That's in stark contrast to how the California Republican obtained the gavel in January, which saw a historic and humiliating standoff including 15 ballots and various compromises to his conservative flank.

Coming out of the debt deal with President Joe Biden, McCarthy is beginning to strut as House Republicans are poised to push for extending the Trump-era tax cuts and other objectives.

On the Democratic side, progressives are feeling put on their heels with little recourse other than the Biden administration arguing that the debt ceiling negotiations could've been worse.

Liberal political observers are trying to pick up the pieces, arguing the agreement avoids default and keeps the economy from diving off a cliff – which incidentally would've put a major dent on Biden's reelection hopes.

But the president and his team for weeks had said there would be no negotiation on the debt limit and compared it to "hostage-taking" before ultimately acquiescing to many GOP demands.

Here are 5 takeaways from what's gone down.

McCarthy struts on coming GOP agenda: 'This is fabulous!'

With a narrow five-seat majority, McCarthy kept up his well-known breezy vibe and exuded confidence during months of tug-of-war with Biden and congressional Democrats.

The debt measure sailed through with strong majorities from both parties – including more Democratic than Republican votes – cutting a projected $1.5 trillion in federal spending, according to the nonpartisan Congressional Budget Office.

McCarthy bludgeoned House Democrats with that coming out of Wednesday's vote, bragging about how they are now on record in support of spending cuts, work requirements for welfare and slashing IRS funding. He telegraphed how Republicans will be coming back for more cuts soon.

"Let's cut more because we are in a big debt," McCarthy said. "This is fabulous!"

This momentum will matter as House Republicans are expected take up a measure that would keep the 2017 tax cuts made during the Trump administration.

"Keep underestimating us, and we'll keep proving to the American public that we’re never giving up on you," McCarthy said.

Freedom Caucus barked, but didn't bite

Leading up to Wednesday's vote members of the House Freedom Caucus made clear the Biden-McCarthy deal stinks, but their howls didn't do much.

Most of its roughly 40 members voted against the debt ceiling deal but overall two-thirds of the entire GOP conference, including fiscal hawks like Reps. Marjorie Taylor Greene, of Georgia, and Thomas Massie, of Kentucky, supported the agreement.

Rep. Dan Bishop, of North Carolina, a Freedom Caucus member, tweeted a vomit emoji during the negotiations. He blasted the outcome, saying McCarthy "got rolled."

"This is what it looks like when the uni-party cartel sells out the American people," Bishop tweeted Wednesday.

Is McCarthy's speakership at risk?

McCarthy may have held off his right flank for now, but the unrest among hard-line conservatives isn't likely to evaporate.

Leading up to the vote, Rep. Matt Gaetz, R-Fla., warned in an interview with Newsmax that if a majority of Republicans opposed a measure and it needed Democrats to pass, "that would immediately be a black letter violation of the deal we had with McCarthy ... and it would likely trigger an immediate motion to vacate."

The "Fiscal Responsibility Act" did have more Democratic than Republican support, but it still had a majority of the GOP conference. Time will tell if that is enough to push an angry Freedom Caucus member to pick a fight with the speaker.

A key concession McCarthy made in January to get the gavel was allowing for an individual lawmakers to call for a vote ousting the speaker. A majority of the House would still be needed to oust McCarthy, however.

Biden blinked on debt strategy

The president insisted for months he wouldn't negotiate with Republicans over raising the debt ceiling and drew a hard line against entertaining spending cuts.

But in the end Biden caved and many liberal lawmakers are having to eat their words on the White House's behalf.

"I was proud to join my fellow progressives to say NO to the GOP’s bad debt ceiling deal," Rep. Pramila Jayapal, of Washington, who leads the Congressional Progressive Caucus, said in a tweet Thursday. "This bill protected the wealthiest billionaires at the expense of working families, and I refused to accept that."

The debt debate may not have divided Democrats as much as Republicans, but progressives are fuming about being put in this situation without an aggressive offense.

"We shouldn't be in this position," Sen. Elizabeth Warren, of Massachusetts, told reporters on Wednesday. "The problem we've got is that the Republicans are willing to take hostages and the Democrats are not."

Leading up to the deal, some progressive legal experts had urged Biden to invoke the 14th Amendment, but ultimately the White House shot that idea down.

Now Democrats and Biden allies are trying to spin the agreement in the president's favor, arguing he was the adult in the room.

“The debt limit deal is dumb public policy, but the worst outcomes were avoided,” tweeted Dan Pfeiffer, a former adviser to President Barack Obama. “For that, Pres. Biden deserves credit.”

Senate Dems making a last stand, but Schumer isn't playing

Just one member in the Democratic-controlled Senate could thwart the entire deal ahead of the June 5 default deadline. All 100 senators have to agree to the vote timing schedule.

Among the Senate Democrats who are upset are Sen. Jeff Merkley, of Oregon, who announced Thursday he opposes the Biden-McCarthy plan.

"It’s unconscionable that MAGA Republicans and Speaker McCarthy were willing to entertain driving the economy over the default cliff at all," he said in a statement. "However, yielding to this blackmail only guarantees that Republicans will use the debt limit to hold America hostage time and time again."

But Merkley and other progressives in the Senate haven't shown any desire to torpedo the deal.

Whatever the fallout will be on the left, Democratic Senate leader Chuck Schumer, of New York, isn't playing around as the June 5 default deadline approaches. He said Thursday his majority will "stay in session until we send a bill avoiding default to President Biden's desk."

"Time is a luxury the Senate does not have," he said.

This article originally appeared on USA TODAY: 5 takeaways on the debt ceiling deal: When will the Senate vote?