[Congressional Record Volume 169, Number 81 (Monday, May 15, 2023)]
[House]
[Pages H2334-H2337]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       LOOMING DEBT LIMIT CRISIS

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 9, 2023, the gentlewoman from Florida (Mrs. Cherfilus-
McCormick) is recognized for the remainder of the hour as the designee 
of the minority leader.
  Mrs. CHERFILUS-McCORMICK. Madam Speaker, for the next 60 minutes, I 
have a chance to speak directly to the American people on issues of 
great importance to the Congressional Black Caucus, Congress, the 
constituents we represent, and all Americans.
  I rise today, Madam Speaker, to underscore how a failure to lift the 
debt ceiling would impact low-income Black families' access to 
healthcare.
  On the other side of the aisle, my colleagues are attempting to rip 
healthcare coverage away from the American people through burdensome 
Medicaid work requirements. Under McCarthy's proposal, more than 10 
million people in Medicaid expansion States would be at significant 
risk of losing coverage, more than one in five enrollees.
  Medicaid is a crucial tool for promoting healthcare equality. It 
covers about 3 in 10 Black Americans, American Indians, Alaska Natives, 
and Native Hawaiian or other Pacific Islanders as adults. It is a major 
source of coverage for people of color and provides financial 
protection from skyrocketing healthcare costs.
  Despite what Republicans say, Medicaid work requirements are 
unnecessary. Most adults already on Medicaid are working. What work 
requirements do is create new barriers to accessing healthcare equality 
and quality healthcare.
  According to the Congressional Budget Office, mandatory work 
requirements will cause 2.2 million people to lose healthcare insurance 
in just 1 year. These healthcare cuts are extreme and have the 
potential to be catastrophic for vulnerable communities.
  Medicaid expansions have worked for Americans. Ever since the 
enactment of the Affordable Care Act, 16.8 million Americans have 
gained healthcare coverage because of Medicaid expansions. At least 
19,000 lives have been saved as a result. Medicaid expansions have 
reduced devastating out-of-pocket medical costs that can be 
debilitating for many families already struggling to make ends meet.
  The debt ceiling proposal that Speaker McCarthy has floated would put 
healthcare out of reach for many Americans and drive them further into 
poverty. Medicaid enrollees cannot afford this brinkmanship of partisan 
politics. Their lives are quite literally depending on it.
  It is our time to act as a Congress to protect the American people 
and ensure everyone has access to quality healthcare.
  Madam Speaker, I yield to the gentlewoman from California (Ms. 
Waters).
  Ms. WATERS. Madam Speaker, right now, the United States economy is 
being held hostage by Speaker McCarthy and extreme MAGA Republicans, 
who have issued a series of radical demands. In their demands, they are 
saying that if they are not met, they will force the United States 
Government into bankruptcy for the first time in our Nation's history.
  Madam Speaker, this fate is exactly 16 days away. The clock is 
ticking. Instead of taking action to avoid this fate, Republicans are 
doubling down on their threats.
  While communities everywhere will suffer enormous harm, no community 
will bear the brunt of this looming economic catastrophe more than the 
Black community. A default on our Nation's debt will discontinue 
crucial programs like Medicare and Social Security.
  In my district alone, a default will jeopardize Social Security 
payments for 59,000 families and threaten the retirement savings of 
89,600 people near retirement. A default will dramatically increase 
borrowing costs for auto, home, and personal loans and hinder access to 
credit for Black communities, which are already paying more for credit 
because of predatory lending practices, which still exist today.
  For example, a default would increase mortgage interest rates above 8 
percent and increase monthly mortgage payments on a median home in 
California by $254, pushing the total cost of homeownership up by over 
$91,000. This would further decimate the American Dream of 
homeownership for far too many families.
  While we have made considerable progress in strengthening Black 
employment under President Biden, a default would significantly reverse 
this progress by throwing 780,000 people out of jobs, including 7,200 
jobs in my district alone.
  As with most economic crises, Black Americans will not only bear the 
brunt of a recession but will also have the most difficult time 
recovering. We have seen this in the past.

[[Page H2335]]

  Let's be very clear. The brinkmanship over our Nation's debt is not 
only a direct attack on our economy but also on Black communities 
everywhere. We are running out of time to save our economy and our most 
vulnerable communities from a crisis of epic proportions.

  Madam Speaker, I urge my Republican colleagues to put an end to this 
needless political theater and raise the debt limit, as they did three 
times with no problems under twice-impeached and indicted former 
President Donald Trump. Not only must they raise the debt limit, but in 
the midst of a worsening housing crisis, they must do so without 
cutting a single penny from critical housing funds.
  Mrs. CHERFILUS-McCORMICK. Madam Speaker, I yield to the gentleman 
from Illinois (Mr. Jackson).
  Mr. JACKSON of Illinois. Madam Speaker, I rise today in the Chamber 
of this hallowed institution to raise my voice, echoing the deep 
concerns that reverberate from the hardworking, dedicated, and 
patriotic citizens of this great Nation.
  Specifically, I stand before you to amplify the anxieties of Black 
Americans, who for far too long have been subjected to the harshest 
winds of economic hardship.
  Today, we find ourselves on the precipice of a financial abyss. I 
must underscore the severe impact that the failure to lift the debt 
ceiling would have on the lives and livelihoods of Black Americans and 
their families across this country.
  Our Nation stands on the brink of a financial crisis, our coffers 
threatening to run dry as soon as June 1. The hard truth, my 
colleagues, is that we have already reached our debt limit of $31.4 
trillion, yet we have not reached an agreement to raise the ceiling. 
This failure to act is not just a legislative oversight. It threatens 
the very fabric of our economy, our society, and, most importantly, our 
people's lives.
  The debt ceiling, for those unfamiliar, is the total amount the 
Federal Government can borrow to meet existing obligations, ranging 
from Medicare and Social Security to loan repayments. If we fail to 
raise this debt limit, we risk default on our national loans, leading 
to a catastrophic fallout for our credit rating and potentially 
triggering a deep recession. The ripple effect of such a financial 
debacle would not only be felt within our borders but would also 
potentially destabilize the global economy.

                              {time}  1945

  Now, you may ask, why should Black Americans be particularly 
concerned?
  The answer lies in the cruel and persistent reality of our 
socioeconomic landscape. A deep recession does not impact all 
demographics equally. Black Americans are typically among the first to 
feel the brunt of economic downturns, often being laid off first and, 
tragically, the last to recover.
  A default would strike an even harsher blow to the backbone of Black 
communities: our elderly. As of 2017, 35 percent of elderly married 
Black couples and 58 percent of unmarried Black older adults depend on 
Social Security for 90 percent or more of their income. If the debt 
ceiling is not lifted, and we default on our obligations, the fallout 
would disproportionately harm the Black community and shred the already 
thin safety net many rely upon.
  The current crisis we face extends beyond Social Security, Medicare, 
and essential Federal services. It reaches into the realm of higher 
education, ensnaring young Black Americans in the tightening grip of 
student loan debt.
  The bill that my colleagues across the aisle have brought to the 
floor would effectively dismantle President Biden's student loan debt 
relief, a plan that promises to lift the yoke of debt from those 
earning less than $125,000 annually, forgiving up to $10,000 in student 
loan debt, and even more for lower-income borrowers. The Republican 
argument that this plan misuses taxpayer dollars to pardon the debts of 
some Americans is not just misguided, it is a grievous 
misrepresentation of the realities faced by our young citizens, 
particularly those of color.
  Black college graduates bear the brunt of this student debt crisis. 
Over 80 percent of Black bachelor's degree recipients are shackled with 
an average debt of over $34,000, according to The Institute for College 
Access and Success. Not only are they borrowing more, but they are also 
defaulting at higher rates because they are not able to go into higher-
paying jobs. These are not merely statistics, Madam Speaker. These are 
the dreams of our youth being crushed under the weight of financial 
obligations.
  In the shadow of this impending catastrophe, we ask: Why has Congress 
not acted?
  It is the same answer that has plagued institutions for centuries: 
politics.
  While the Republican-controlled House has passed a bill to raise the 
debt limit, it is fraught with spending cuts and new work requirements 
for those receiving government benefits, making it an untenable 
solution.
  Over 85 percent of those persons who are receiving these benefits now 
have an elderly person or child or are unable to find public or private 
transportation to meet these work requirements. We must think of the 
whole continuum in order to fix the problem and not lay blame on the 
backs of the poor.
  During the Presidency of Donald Trump, Congress raised the debt limit 
three times--in 2017, 2018, and 2019--with bipartisan support, and no 
precondition on budget cuts. Since 1959, the debt ceiling has been 
raised 89 times. A financial crisis was averted because both sides of 
the aisle recognized the need to act swiftly and responsibly to protect 
the interests of the American people.
  Now, as we face a similar situation, the Biden-Harris administration 
has drawn a clear line in the sand. They have rightly insisted that 
fiscal budgets and the debt ceiling should be separate issues. Again, 
fiscal budgets and the debt ceiling should be separate issues. The 
former is a debate about the future. The latter is a commitment to 
paying our bills for debts we have already incurred. Mixing these two 
distinct aspects would be akin to confusing our aspirations with our 
responsibilities.
  A default would wreak havoc on Federal services that Black and Brown 
communities disproportionately rely upon, such as food assistance and 
Social Security. It would cause the government to prioritize debt 
payments over the well-being of its citizens, leading to a potential 
halt on these critical services. The impacts of a default are largely 
unknown and could be far-reaching, potentially exacerbating existing 
racial disparities in healthcare, veteran services, and the labor 
market.
  A default would also have a chilling effect on consumer borrowing 
costs, with interest rates likely to skyrocket for home, auto, and 
personal loans. Furthermore, the increased credit risk of the Federal 
Government could significantly hinder credit access for communities of 
color, who are already more likely to have weaker credit profiles and 
also the history of redlining.
  Our Nation is at a crossroads. We cannot allow political brinkmanship 
to lead us into an economic downturn that would disproportionately 
devastate our most vulnerable communities. A failure to lift the debt 
ceiling is not just an economic misstep, it is a failure of our 
collective moral responsibilities to all Americans, especially those 
who have historically been marginalized and disadvantaged.
  Black unemployment has been decreasing, and we have made strides 
toward a stronger, more equitable economy. Yet, if a recession were to 
happen due to our failure to raise the debt limit, the unemployment 
rate for Black Americans would rise again, faster than for other 
demographics. This potential economic downturn threatens to wipe away 
the progress we have made and plunge us back into inequality and 
hardship.
  We must not allow a crisis of our own making to unravel the hard-
earned progress of our people. We must raise the debt ceiling, not just 
because it is economically prudent, but because it is morally right.
  The dignity and welfare of our people, especially Black families who 
have far too long borne the brunt of economic hardship, hang in the 
balance. Let us act not out of fear but out of hope; not out of 
division but out of unity; and not out of despair but out of the belief 
in the promise of a more equitable and prosperous America for all.
  Mrs. CHERFILUS-McCORMICK. Madam Speaker, I yield to the gentlewoman 
from Texas (Ms. Jackson Lee).

[[Page H2336]]

  

  Ms. JACKSON LEE. Madam Speaker, let me thank the gentlewoman from 
Florida (Mrs. Cherfilus-McCormick) and the gentleman from Illinois (Mr. 
Jackson) for gathering us this evening.
  As I have often said, this is National Police Week. Today, we honor 
those who have fallen in battle. That is why I think this debate on the 
debt ceiling is so crucial, and it is really important to have the 
American people recognize, particularly those impacted in the African-
American community, as the Congressional Black Caucus rises today to 
specifically focus on the, if you will, economic infrastructure around 
a community that has in its history in this country been deprived of 
economic wealth and has a wealth disparity between Anglo Americans of 
$174,000 versus about $17,000, which leads us to understand how 
important it is to have a stable economic structure and for the country 
to pay its bills.
  Madam Speaker, what is the debt ceiling?
  It is simply a procedure that has been designated as required for the 
Nation to pay her bills. Every single family, independent, working 
person, and people who are in need understand the need to pay bills. 
They understand the crisis of not paying bills.
  Tonight, I just want to briefly discuss some of the challenges that 
will be faced by poor people, people of color, but also by our law 
enforcement. Tragically, we see circumstances when law enforcement on 
the front lines are in jeopardy. As we see that, we are hearing about 
who is for the police and who is not for the police.
  Let me tell you what the default on America bill that has been passed 
by my Republican friends will do. Frankly, that bill is what we are 
being held hostage for. They want to move the default on America bill 
before we do the right, constitutional, and definitively important act 
of raising the debt ceiling simply to pay the bills, simply to have 
America continue to be rolling on all wheels, simply to make sure that 
the military is paid, and the massive numbers of law enforcement are 
paid.
  With this bill, the Department of Justice budget will be cut by over 
$8 billion and threatens nearly 30,000 law enforcement jobs.
  The default on America bill cuts nearly $1 billion in grants for 
State, local, and Tribal law enforcement. That includes $150 million in 
the bill that I wrote, the Violence Against Women Act, and it cuts the 
programs created by the Violence Against Women Act, which will 
especially harm women in Native communities.
  The bill cuts $1 billion in FBI funding that the agency uses to 
conduct background checks to solve violent crimes and combat terrorism. 
This is protecting individual family members and neighborhoods. By 
cutting these dollars, you are putting them in jeopardy.
  It eliminates $564 million in funding for the Drug Enforcement 
Agency. We are trying to stop fentanyl which, by the way, has been 
brought in by U.S. citizens through legal points of entry.
  It eliminates $384 million more from the Bureau of Alcohol, Tobacco, 
Firearms and Explosives. We have seen what guns can do to law 
enforcement officers on the front lines. I am stunned that we are where 
we are today. It has already been noted that, in fact, under the past 
administration, the Trump administration, if I might say, the debt 
ceiling was raised in a collegial, responsible way by former Speaker 
Nancy Pelosi and the Democratic majority with the Trump administration 
doing what is right.
  The only thing that undermined a strong economy was the major deficit 
and debt that was created by the Trump tax cuts.
  So, here we are today. Why, I ask, are we, in essence, being 
stumbling blocks instead of building for eternity, instead of working 
together, instead of finding common ground?
  If we voted today, we would be voting to honor those who have fallen, 
we will be voting to honor those who serve. We need to provide those 
funds to local, State, and Tribal Governments to ensure that we have 
law enforcement, that 800,000 police are not diminished but they are 
enhanced with skills, training, and funding that we are able to do in 
the Federal Government.
  Let me add, this will be making poor people poorer. Food stamps and 
other nutritional programs will be cut by $14.7 billion in August and 
September; Pell grants that cover higher education--which is the 
underpinning of creating a new America, an America that is an 
opportunity for all of us--for low-income students will be cut $8.8 
billion. Educational programs designed to improve academic achievement 
for disadvantaged children, will be cut $2.5 billion by August and 
September; early childhood development services for low-income 
children--these are lifelines for these children--will be cut by $1.3 
billion. All of these are very special and close to my heart, but job 
training programs for dislocated workers, youth employment services--
which directly relate to young people having an opportunity in the 
summer, not being distracted, not being subjected to potential violence 
or loss of life because they are not being constructively engaged--will 
be cut by $800 million.

  I am wondering, can we not work together as we did under the 
Democratic majority, working with a Republican President?
  Can't we work with a Democratic President and a Republican House and 
do what is right for the American people and ensure that the poor don't 
get poorer, and that people of color don't get thrown, not just off the 
rails but out of the train and out of the bus to be rolled over?
  We have got to be able to respond to our early histories, many of us 
know what being poor is, but most of us know what it is to come up 
without much, but because of education and opportunities, we are here 
in this Congress today. I see that in my constituents. I see that in 
the high schools I go to. The graduating classes I went to over the 
weekend where I saw the graduates who individually had stories where 
their original beginnings were not the best, but look at them, 
graduating with an undergraduate business degree, graduating from law 
school, graduating with associate degrees, making life better because 
part of that was funded by Federal resources.
  We need to raise the debt ceiling, not by being held hostage, but by 
doing the responsible thing. We need to pay America's bills and to make 
sure that the American people who are pulling themselves up by their 
bootstraps have the shoes to be able to pull themselves up. We need to 
make sure during this very special week that we honor police officers 
by providing those local police departments, State departments, Tribal 
departments the resources that they need, and particularly that we 
don't underfund the Violence Against Women Act--some of the most 
violent calls are domestic violence calls--by $150 million. We need to 
make sure that we do not take money away from police officers, $8 
billion, with 30,000 law enforcement officers lost.
  How outrageous are we going to be?
  Raise the debt ceiling and do what is right for the American people 
and our children.
  Madam Speaker, as a senior member of the Congressional Black Caucus, 
and on the House Budget Committee, it is my duty to speak on the 
Republican manufactured debt crisis and the devastating impacts of the 
failure to lift the debt ceiling would have on Black families.
  Breaching the debt limit would provoke unprecedented economic damage 
and instability in the U.S. and around the world.
  Every single American would feel the effects of a first-ever default:
  An estimated 8 million people would be out of work and the 
unemployment rate would double;
  Social Security checks would be halted to 67 million Americans;
  Medicaid services would be in doubt, affecting 75 million people's 
health coverage;
  The average worker close to retirement could see their retirement 
savings decrease by $20,000 due to Republican brinksmanship impacting 
the stock market.
  Republicans suspended the debt ceiling three times under President 
Trump.
  In fact, the massive Republican tax cuts over the last 25 years have 
cost $10 trillion to date and are responsible for 57 percent of the 
increase to the debt ratio since 2001.
  Instead of investing in America, Republicans would rather focus on 
holding our economy hostage to advance unpopular and dangerous right-
wing priorities.
  Their plan would expand so called ``work requirements'' in the 
Supplemental Nutrition Assistance Program (SNAP).
  Everyone needs enough resources to afford the basics including food, 
a roof over their heads, and healthcare.
  Taking food, health care, or income support away from people who do 
not meet work-reporting requirements causes harm and does not increase 
work.

[[Page H2337]]

  SNAP already has a requirement for some participants and it's a 
failure--it takes basic food assistance away from people who need it 
and doesn't boost their employment.
  Most people who get help affording food or health coverage do work. 
But this proposal will cause many working people to lose assistance.
  Not only would their unpopular policies negatively impact millions of 
people across America, their proposed spending cuts would specifically 
have devastating impacts on thousands of hardworking families across 
Texas.
  Republicans are threatening food assistance for up to 855,000 Texans 
with their proposals for harsh new eligibility restrictions in SNAP. 
This proposal would also mean 139,000 women, infants, and children 
would lose vital nutrition assistance through the Women, Infants, and 
Children (WIC), increasing child poverty and hunger.
  This proposal would not only eliminate Pell Grants altogether for 
6,800 students in Texas, but it would also reduce the maximum award by 
nearly $1,000 for the remaining 581,100 students who receive Pell 
Grants--making it harder for them to attend and afford college.
  Under this proposal, 39,700 families in Texas would lose access to 
rental assistance, including older adults, persons with disabilities, 
and families with children, who without rental assistance would be at 
risk of homelessness.
  Under this proposal, people applying for disability benefits would 
have to wait at least two months longer for a decision. With fewer 
staff available, 5 million seniors and people with disabilities in 
Texas would be forced to endure longer wait times when they call for 
assistance for both Social Security and Medicare.
  This proposal would mean 46,100 fewer veteran outpatient visits in 
Texas, leaving veterans unable to get appointments for care like 
wellness visits, mental health services, and substance disorder 
treatment.
  The proposal would mean 17,500 children in Texas lose access to Head 
Start slots and 9,900 children lose access to childcare--undermining 
our children's education and making it more difficult for parents to 
join the workforce and contribute to our economy.
  The proposal would deny admission to opioid use disorder treatment 
for more than 1,100 people in Texas through the State Opioid Response 
grant program--denying them a potentially life-saving path to recovery.
  More specifically, the impacts on my home district, Texas-18, would 
be catastrophic:
  Kill 7,300 jobs in TX-18;
  Jeopardize Social Security payments for 61,000 families in TX-18;
  Put health benefits at risk for 242,000 people in TX-18 who rely on 
Medicare, Medicaid, or Veterans Affairs health coverage;
  Increase lifetime mortgage costs for the typical homeowner in Texas 
by $50,000;
  Threaten the retirement savings of 81,400 people near retirement in 
TX-18, eliminating $20,000 from the typical retirement portfolio.
  There never has been and never will be anything fiscally responsible 
about refusing to pay America's bills, risking millions of jobs, or 
threatening economic ruin.

                              {time}  2000

  Ms. CHERFILUS-McCORMICK. Madam Speaker, you have heard from my 
distinguished colleagues about our topic today, which is raising the 
debt ceiling, all issues of great importance to the Congressional Black 
Caucus, our constituents, Congress, and all Americans tonight.
  Madam Speaker, I yield back the balance of my time.

                          ____________________