"Today, I’m proud to announce that we are introducing the Limit, Save, Grow Act of 2023. This responsible legislation will be led by our budget chairman, Jodey Arrington, would responsibly raise the debt limit into next year and provide more than $4.5 trillion in savings to the American taxpayers," McCarthy said during remarks on the proposal.
The plan involves finding areas of government spending to cut, recovering unspent COVID-19 relief funds and prohibiting US President Joe Biden’s student debt relief proposal.
The plan will also address inflation and US dependency on China, McCarthy said.
The Republican plan comes amid stalled talks between McCarthy and Biden on raising the debt ceiling.
Democrats no longer have an excuse not to negotiate a responsible debt ceiling increase now that Republicans have provided a plan, McCarthy said.
Earlier on Wednesday, US media reported that the Republican plan will raise the debt limit by $1.5 trillion or through March 31, 2024 – whichever comes first.
A "no-strings-attached" debt limit increase would not get past House Republicans, McCarthy said on Monday.