Liberals blast Pelosi pay-go’ rule as ‘handcuff’ on new House majority

House Democratic leaders’ plans to impose new budget rules as they take over the chamber Thursday already are running into trouble on Capitol Hill, where liberals say they fear the “pay-as-you-go” restrictions could sink their chances of government-run health care.

Led by Rep. Nancy Pelosi, who is poised to reclaim the speaker’s gavel Thursday, Democrats will try to muscle through rules changes aimed at circumventing debt-limit showdowns, ending tax-cut-friendly budgeting, and reinstating the “pay-go” rules requiring the cost of new government programs to be offset with tax increases or spending cuts elsewhere.

But key progressives said they’re wary of pay-go rules, because it will make it tougher to pursue ideas such as the Medicare-for-all, government-sponsored health care system that has become a litmus test for liberals.

“We shouldn’t hinder ourselves from the start,” tweeted Rep.-elect Alexandria Ocasio-Cortez, New York Democrat.

Another Democrat, Rep. Ro Khanna, said requiring new spending to be paid for was “terrible economics,” and said it could prevent the government from being able to spend its way out of a future economic downturn.

“The austerians were wrong about the Great Recession and Great Depression,” Mr. Khanna said on Twitter. “At some point, politicians need to learn from mistakes and read economic history.”

He said he’ll vote against the rules package Mrs. Pelosi and her lieutenants will offer.

Rep. Tim Ryan said Congress needs to balance the budget long term but that he opposes “pay-go” for now, saying leaders shouldn’t “handcuff” the new Democratic House majority.

“Critical investments in education, infrastructure and health care should not be held hostage to budgetary constraints that Republicans have never respected anyhow,” the Ohio Democrat said.

It was not clear whether the objections would spread into a full-on rebellion that could sink the broader package.

Mr. Ryan’s office said Wednesday he was undecided on whether he would vote for the package, while other key liberal lawmakers said they would support their leaders despite their concerns. Read more

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