[House Report 118-340]
[From the U.S. Government Publishing Office]
118th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 118-340
======================================================================
DEFAULT PREVENTION ACT
_______
January 9, 2024.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Smith of Missouri, from the Committee on Ways and Means, submitted
the following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 187]
[Including cost estimate of the Congressional Budget Office]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 187) to ensure the payment of interest and principal
of the debt of the United States, having considered the same,
reports favorably thereon with an amendment and recommends that
the bill as amended do pass.
CONTENTS
Page
I. SUMMARY AND BACKGROUND...........................................3
A. Purpose and Summary................................. 3
B. Background and Need for Legislation................. 4
C. Legislative History................................. 4
D. Designated Hearing.................................. 4
II. EXPLANATION OF THE BILL..........................................4
A. The Default Prevention Act.......................... 4
III. VOTE OF THE COMMITTEE............................................6
IV. BUDGET EFFECTS OF THE BILL.......................................7
A. Committee Estimate of Budgetary Effects............. 7
B. Statement Regarding New Budget Authority and Tax
Expenditures Budget Authority...................... 7
V. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET OFFICE........7
VI. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE.......8
A. Committee Oversight Findings and Recommendations.... 8
B. Statement of General Performance Goals and
Objectives......................................... 8
C. Information Relating to Unfunded Mandates........... 8
D. Congressional Earmarks, Limited Tax Benefits, and
Limited Tariff Benefits............................ 9
E. Duplication of Federal Programs..................... 9
VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED............9
A. Text of Existing Law Amended or Repealed by the
Bill, as Reported.................................. 9
VIII.DISSENTING VIEWS................................................10
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Default Prevention Act''.
SEC. 2. PAYMENT OF OBLIGATIONS.
(a) In General.--At any time that the debt of the United States
Government subject to limitation under section 3101 of title 31, United
States Code, has reached the limitation imposed under such section, the
Secretary of the Treasury (hereafter in this section referred to as
``the Secretary'') shall--
(1) pay Tier I obligations as such obligations become due,
(2) issue such obligations under chapter 31 of title 31,
United States Code, as--
(A) are necessary to make the payments described in
paragraph (1), or
(B) are to be held exclusively by a trust fund
referred to in subsection (b)(1)(A),
(3) pay Tier III obligations only to the extent that the
Secretary can still pay all Tier II obligations as such
obligations become due,
(4) pay Tier IV obligations only to the extent that the
Secretary can still pay all Tier II and Tier III obligations as
such obligations become due,
(5) pay Tier V obligations only to the extent that the
Secretary can still pay all Tier II, Tier III, and Tier IV
obligations as such obligations become due, and
(6) submit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a
weekly written report containing the information described in
subsection (d).
(b) Definitions.--For purposes of this section--
(1) Tier i obligations.--The term ``Tier I obligations''
means payments necessary to provide any of the following:
(A) Payment with legal tender pursuant to the
authority provided under section 3123 of title 31,
United States Code, of principal and interest on debt
held by--
(i) the public,
(ii) the Federal Old-Age and Survivors
Insurance Trust Fund or the Federal Disability
Insurance Trust Fund, or
(iii) the Federal Hospital Insurance Trust
Fund or the Federal Supplementary Medical
Insurance Trust Fund.
(B) Payments under the Medicare program under title
XVIII of the Social Security Act (42 U.S.C. 1395 et
seq.).
(2) Tier ii obligations.--The term ``Tier II obligations''
means payments necessary to provide any of the following:
(A) Any obligation of the Department of Defense.
(B) Benefits under laws administered by the Secretary
of Veterans Affairs.
(3) Tier iii obligations.--The term ``Tier III obligations''
means any obligation of the United States which is not a Tier
I, Tier II, Tier IV, or Tier V obligation.
(4) Tier iv obligations.--The term ``Tier IV obligations''
means any payment which constitutes any of the following:
(A) Compensation for any Federal employee for
official time under section 7131 of such title 5,
United States Code.
(B) Any payment for travel expenses for any officer
or employee of the Executive branch of Government,
including the President and Vice President, unless such
payment is a Tier I or Tier II obligation.
(C) Compensation of any officer or employee of the
Executive branch of Government (other than an
individual in the competitive service, as defined in
section 2102 of title 5, United States Code), including
the President and Vice President, unless such
compensation is a Tier I or Tier II obligation.
(5) Tier v obligations.--The term ``Tier V obligations''
means compensation of any Member of Congress (as that term is
defined in section 2106 of title 5, United States Code).
(c) Coordination With Public Debt Limit.--Obligations issued under
subsection (a)(2) shall not be taken into account as subject to the
limitation imposed under section 3101(b) of title 31, United States
Code. The preceding sentence shall not apply with respect to any
obligation after the first date (after the issuance of such obligation)
on which any modification or suspension of such limitation takes
effect.
(d) Weekly Reports.--The written report referred to in subsection
(a)(6) shall include, with respect to the period covered by such
report--
(1) the amount of Tier I obligations paid under subsection
(a)(1) during such period,
(2) the amount of obligations issued under subsection (a)(2)
during such period, and
(3) the amount of Tier II obligations, Tier III obligations,
Tier IV obligations, and Tier V obligations which were paid
during such period (stated separately for each tier) and the
aggregate amount of such obligations which were due and unpaid
as of the close of such period (stated separately for each
tier).
(e) No Inference With Respect to Existing Authority to Prioritize
Payments.--During any period with respect to which this section does
not apply, nothing in this section shall be interpreted to restrict the
authority of the Secretary to prioritize the payment of certain
obligations over other obligations.
I. SUMMARY AND BACKGROUND
A. Purpose and Summary
The bill, H.R. 187, the ``Default Prevention Act,'' as
ordered reported by the Committee on Ways and Means on March 9,
2023, directs the Secretary of the Treasury (Treasury) to issue
new debt when the statutory limit is reached to the extent
necessary to pay the principal and interest on publicly held
debt and to issue to and redeem assets from the Social Security
Trust Funds for the purposes of paying Social Security
benefits. The bill would also extend this debt authority to the
extent necessary to issue to and redeem assets from the
Medicare Trust Funds, and provide payments under the Medicare
program.
In addition, aside from the aforementioned obligations, the
amendment prohibits the Treasury from meeting any remaining
obligations, unless the Treasury can still meet the obligations
of the Department of Defense, and any obligations necessary to
provide benefits under the Department of Veterans Affairs. The
bill would generally prohibit the Treasury from meeting
obligations related to compensation for official time, payment
for government travel, and payments to the President, Vice
President, and other members of the excepted service unless all
other obligations except for payments to Members of Congress
can still be met. Finally, the bill would specifically prohibit
the Treasury from providing compensation to any Member of
Congress unless all other obligations can still be met.
The bill would also direct the Treasury to provide weekly
reports to the House Committee on Ways and Means and the Senate
Committee on Finance regarding the amount of new debt issued
under the authority provided, and on the obligations met and
unmet over the prior week.
Lastly, the bill would clarify that the specific directive
authority provided by the bill should not be interpreted as
otherwise modifying any existing authority of the Treasury to
prioritize the payment of certain obligations over others.
B. Background and Need for Legislation
The consequences of the U.S. Government failing to make
timely and complete payment on Treasury debt, that is, a
default, could be severe. A default would not only be a great
discredit to our nation's standing in the world, it would also
raise borrowing costs, which, in turn, would threaten our
ability to finance essential government functions going
forward. In addition, a default could push the country into a
recession. The legislation removes the risk of default by
providing a mechanism to ensure that principal and interest on
U.S. debt obligations are paid. Furthermore, it protects
seniors by ensuring the debt limit does not prevent Social
Security and Medicare benefits from being met; stands with
Americans in uniform by prioritizing our nation's security,
servicemembers, and veterans; and holds the President and
lawmakers accountable by ensuring that they don't receive
compensation until other obligations are met.
C. Legislative History
BACKGROUND
H.R. 187 was introduced on January 9, 2023, and was
referred to the Committee on Ways and Means.
COMMITTEE HEARINGS
On February 6, 2023, the Committee held a field hearing on
the state of the American economy in Appalachia (Petersburg,
West Virginia), where management of debt was discussed.
On March 7, 2023, the Committee held a field hearing on the
state of the American economy in the Heartland (Yukon,
Oklahoma), where management of debt was discussed.
COMMITTEE ACTION
The Committee on Ways and Means marked up H.R. 187, the
``Default Prevention Act,'' on March 9, 2023, and ordered the
bill, as amended, favorably reported (with a quorum being
present).
D. Designated Hearing
Pursuant to clause 3(c)(6) of rule XIII, the following
hearings were used to develop and consider H.R. 187:
(1) Committee on Ways and Means field hearing which
took place on February 6, 2023, entitled: ``The State
of the American Economy: Appalachia''.
(2) Committee on Ways and Means field hearing which
took place on March 7, 2023, entitled: ``The State of
the American Economy: The Heartland''.
II. EXPLANATION OF THE BILL
A. The Default Prevention Act
PRESENT LAW
Article 1, Section 8 of the Constitution grants Congress
sole authority over the fiscal powers to tax, spend, and
borrow:
The Congress shall have Power To lay and collect
Taxes, Duties, Imposts and Excises, to pay the Debts
and provide for the common Defence and general Welfare
of the United States . . . To borrow Money on the
credit of the United States
Congress initially exercised this authority directly, but
gradually delegated more and more of this authority to the
Executive Branch, primarily to the Treasury. With few
exceptions, the federal government has run at some annual
deficit level since the 1930s, requiring the government,
through the Treasury, to issue and manage debt to cover the
difference.
While Congress has placed limitations on the federal
government's authority to issue debt, the modern debt limit,
which places an aggregate limit on the Treasury's general
delegated authority to issue debt, was first established in
1939. Once the debt limit is reached, the Treasury may no
longer issue additional debt if doing so would increase the
total amount of outstanding debt subject to the limit. After
reaching the debt limit, the Treasury can continue to finance
the government for a limited time under existing authority
through a combination of incoming revenues and the use of
``extraordinary measures.'' These measures provide temporary
liquidity to the Treasury for operations but generally must be
repaid with interest once the debt limit is increased.
In fiscal year (FY) 2023 the federal government is
projected to run a $1.4 trillion deficit, and over the next
decade, the federal government is projected to spend $1.33 for
every $1 in revenue. Ordinarily, these budget shortfalls would
be financed through the issuance of debt, but the current debt
limit, which applies to approximately 99 percent of all
federally issued debt, is set at $31.4 trillion and was reached
on January 19, 2023. In a January 13 letter to Congress,
Secretary Yellen said that the Treasury could use extraordinary
measures to finance the government through at least early June
2023.
In December 2021, the Democrats raised the debt limit by a
record $2.5 trillion, but it only took about a year for
Democrat spending to max out the federal government's credit
again.
REASONS FOR CHANGE
The policy provisions in H.R. 187 are intended to protect
the full faith and credit of the United States by permanently
removing the risk that the United States could default on its
debt obligations; protect seniors by ensuring that the debt
limit does not prevent Social Security and Medicare benefits
from being met; stand with Americans in uniform by prioritizing
our nation's security, servicemembers, and veterans; and hold
the President and lawmakers accountable by ensuring that they
don't receive compensation until other obligations are met.
EXPLANATION OF PROVISIONS
Section 1 provides the short title of the bill as the
``Default Prevention Act''.
Section 2 provides that in the event the debt of the United
States Government reaches the statutory limit, the Treasury
shall issue debt to the extent necessary to pay principal and
interest on certain obligations as defined. Obligations for
which debt shall be issued are limited to those obligations
held by the public or those necessary to issue to and redeem
assets from the Social Security Trust Funds, to issue to and
redeem assets from the Medicare Trust Funds, and to provide
payments under the Medicare program. Obligations issued
pursuant to this authority are exempt from the statutory debt
limit.
Section 2 also prohibits the Treasury from meeting any
remaining obligations, unless the Treasury can still meet the
obligations of the Department of Defense, and any obligations
necessary to provide benefits under the Department of Veterans
Affairs; generally prohibits the Treasury from meeting
obligations related to compensation for official time, payment
for government travel, and payments to the President, Vice
President, and other members of the excepted service unless all
other obligations except for payments to Members of Congress
can still be met; and, specifically prohibits the Treasury from
providing compensation to any Member of Congress unless all
other obligations can still be met.
Additionally, Section 2 directs the Treasury to provide
weekly reports to the House Committee on Ways and Means and
Senate Committee on Finance regarding the amount of new debt
issued under the authority provided, and on the obligations met
and unmet over the prior week, and clarifies that the specific
directive authority provided by the bill should not be
interpreted as otherwise modifying any existing authority of
the Treasury to prioritize the payment of certain obligations
over others.
EFFECTIVE DATE
The bill would become effective upon enactment.
III. VOTE OF THE COMMITTEE
In compliance with the Rules of the House of
Representatives, the following statement is made concerning the
vote of the Committee on Ways and Means during the markup
consideration of H.R. 187, the ``Default Prevention Act'' on
March 9, 2023.
H.R. 187 was ordered favorably reported to the House of
Representatives as amended by a roll call vote of 21 yeas to 17
nays (with a quorum being present). The vote was as follows:
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Smith (MO)................ X ......... ......... Mr. Neal........ ........ X .........
Mr. Buchanan.................. X ......... ......... Mr. Doggett..... ........ X .........
Mr. Smith (NE)................ X ......... ......... Mr. Thompson.... ........ X .........
Mr. Kelly..................... X ......... ......... Mr. Larson...... ........ X .........
Mr. Schweikert................ X ......... ......... Mr. Blumenauer.. ........ X .........
Mr. LaHood.................... ........ ......... ......... Mr. Pascrell.... ........ X .........
Dr. Wenstrup.................. ........ ......... ......... Mr. Davis....... ........ X .........
Mr. Arrington................. X ......... ......... Ms. Sanchez..... ........ X .........
Dr. Ferguson.................. X ......... ......... Mr. Higgins..... ........ X .........
Mr. Estes..................... ........ ......... ......... Ms. Sewell...... ........ ......... .........
Mr. Smucker................... X ......... ......... Ms. DelBene..... ........ X .........
Mr. Hern...................... X ......... ......... Ms. Chu......... ........ X .........
Ms. Miller.................... X ......... ......... Ms. Moore....... ........ X .........
Dr. Murphy.................... X ......... ......... Mr. Kildee...... ........ X .........
Mr. Kustoff................... X ......... ......... Mr. Beyer....... ........ X .........
Mr. Fitzpatrick............... X ......... ......... Mr. Evans....... ........ X .........
Mr. Steube.................... ........ ......... ......... Mr. Schneider... ........ X .........
Ms. Tenney.................... X ......... ......... Mr. Panetta..... ........ X .........
Mrs. Fischbach................ X ......... .........
Mr. Moore..................... X ......... .........
Mrs. Steel.................... X ......... .........
Ms. Van Duyne................. X ......... .........
Mr. Feenstra.................. X ......... .........
Ms. Malliotakis............... X ......... .........
Mr. Carey..................... X ......... .........
----------------------------------------------------------------------------------------------------------------
IV. BUDGET EFFECTS OF THE BILL
A. Committee Estimate of Budgetary Effects
In compliance with clause 3(d) of rule XIII of the Rules of
the House of Representatives, the following statement is made
concerning the effects on the budget of the bill, H.R. 187, as
reported. The estimate prepared by the Congressional Budget
Office (CBO) is included below.
B. Statement Regarding New Budget Authority and Tax Expenditures Budget
Authority
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee states that the
bill involves no new or increased budget authority. The
Committee states further that the bill involves no new or
increased tax expenditures.
V. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET OFFICE
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, requiring a cost estimate
prepared by the CBO, the following statement by CBO is
provided.
H.R. 187 would require the Treasury to prioritize payment
of obligations using a five-tiered payment structure if total
debt subject to limit is at the statutory maximum. Under the
bill the Treasury could issue debt that would not be subject to
the statutory limit in amounts that would be sufficient to meet
obligations for the first tier: the principal and interest on
the public debt and the obligations of Social Security and
Medicare. Payment of obligations would be prioritized as
follows:
Tier I would include payments for public
debt, Social Security, and Medicare;
Tier II would include payments for
obligations of the Departments of Defense and Veterans
Affairs;
Tier III would include payments for
obligations of any program not in a designated tier;
Tier IV would include payments for certain
federal employee union activities, executive branch
travel, and compensation of the President, Vice
President and some political appointees; and
Tier V would include compensation to Members
of Congress.
Until a new debt limit is enacted, the bill would require
the Treasury to report each week to the House Committee on Ways
and Means and the Senate Committee on Finance concerning
exempted transactions and categorical spending.
CBO estimates that enacting H.R. 187, by itself, would not
affect direct spending or revenues because it would not change
any of the government's tax or spending policies. CBO estimates
that implementing the bill's tiered-payment system and weekly
reporting requirement would increase the Treasury's
administrative costs; any related spending would be subject to
the availability of appropriated funds. CBO does not have a
basis to assess the feasibility, the required time to
implement, or the total cost to the Treasury to develop such a
payment system. We estimate those costs would significantly
exceed $500,000 because the Treasury's payment systems are not
currently set up to handle different priorities. Based on the
requirements in the bill and the cost of similar reports, CBO
estimates that the weekly reporting requirement would cost less
than $500,000 each time debt subject to the limit reaches the
statutory limit.
The CBO staff contact for this estimate is Avi Lerner. The
estimate was reviewed by H. Samuel Papenfuss, Deputy Director
of Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
VI. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE
A. Committee Oversight Findings and Recommendations
With respect to clause 3(c)(1) of rule XIII of the Rules of
the House of Representatives, the Committee made findings and
recommendations that are reflected in this report.
B. Statement of General Performance Goals and Objectives
With respect to clause 3(c)(4) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
bill does not authorize funding, so no statement of general
performance goals and objectives is required.
C. Information Relating to Unfunded Mandates
This information is provided in accordance with section 423
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
The Committee has determined that the bill does not contain
Federal mandates on the private sector. The Committee has
determined that the bill does not impose a Federal
intergovernmental mandate on State, local, or tribal
governments.
D. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill, and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
E. Duplication of Federal Programs
In compliance with clause 3(c)(5) of rule XIII of the Rules
of the House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes: (1) a
program of the Federal Government known to be duplicative of
another Federal program; (2) a program included in any report
from the Government Accountability Office to Congress pursuant
to section 21 of Public Law 111-139; or (3) a program related
to a program identified in the most recent Catalog of Federal
Domestic Assistance, published pursuant to the Federal Program
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No.
98-169).
VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
A. Text of Existing Law Amended or Repealed by the Bill, as Reported
With respect to the requirement of clause 3(e) of rule XIII
of the Rules of the House of Representatives, changes in
existing law made by the bill, as reported, this section was
not made available to the Committee.
VIII. DISSENTING VIEWS
This legislation does nothing to prevent default, despite
its misleading title. At best, it provides a roadmap for what
to do if Republican extremists in Congress force the first-ever
default on the full faith and credit of the United States. It's
a frightening roadmap, one that directs the Treasury to pay
foreign bondholders while defaulting on pay and benefits to
veterans and members of the Armed Forces, Medicaid payments to
nursing homes, our nation's family farms, and refunds owed to
American taxpayers.
More likely, this bill is a political game intended to make
negotiating unpopular cuts to Medicare and Social Security seem
like the only way to prevent default. The Republican Study
Committee, which represents the majority of House Republicans,
has put forth a plan to cut Social Security by $729 billion
over the next decade while raising the eligibility age for
Medicare and denying seniors health coverage.
The consequences of Republican gamesmanship and failure to
govern could be catastrophic for our strong economic recovery.
We know from prior crises provoked by Republican extremists
that even talking about defaulting costs us jobs, costs
taxpayers money, and lowers the balances in retirement funds
for millions of workers. In 2011, Republican default threats
led to a first-ever downgrade in the U.S. credit rating, a
private sector hiring freeze, and a stock market plunge. A new
round of threats in 2013 reduced GDP by 0.25 percentage point
and cost taxpayers an estimated $70 million in additional
borrowing costs. In 2015, Republicans brought a bill very
similar to this one to the House floor, and for the first time
ever, Treasury was forced to cancel an auction because
investors were unwilling to buy short-term Treasury bonds at
any price.
Although this legislation purports to allow payments to
seniors to continue while we default on other obligations,
Republicans offered no plan for how to make that logistically
possible. For over a decade, Treasury Secretaries and experts
from both parties have said that ``prioritizing'' debt is
logistically impossible. The Treasury makes an average of 5
million payments every business day--a projected 1.28 billion
payments this year. To pay those bills on time, as we always
have, they rely on systems that pay all obligations
automatically, in the order they are due. When Democrats raised
questions about whether Treasury had been consulted, the Chair
suggested that Members could ask the Treasury Secretary, who
was scheduled to appear before us the day after we voted on the
bill. At our hearing the next day, no Republican Member chose
to ask the Treasury Secretary. Democrats did ask, and the
answer was the same. It's not possible.
Richard E. Neal,
Ranking Member.
Ranking Member Richard E. Neal Opening Statement, Committee on Ways and
Means Markup of H.R. 187, Thursday, March 9, 2023
Thank you, Mr. Chairman. We are here today to go through a
rite of passage for new Republican majorities. They run on
combatting inflation, and making the economy work for the
American people. Only to take control and start calling for
cuts to Social Security, Medicare, and Medicaid in the name of
fiscal responsibility. All while risking the full faith and
credit of the United States and plotting unfunded tax cuts for
the wealthy and well-connected.
Today, they are bringing forth legislation that
acknowledges they will put extremism before responsibility,
potentially preventing the United States from paying its bills.
Debt prioritization is impossible, but that hasn't stopped
Republicans before. So, congratulations are in order, Mr.
Chairman. You've officially joined the ranks of Republican
Chairmen that came before you.
Republican and Democratic Treasury Secretaries, along with
bipartisan experts, have been telling us this wouldn't work for
over a decade. The Treasury makes an average of 5 million
payments every day. You can't flag some in the computer to pay
on time, leaving others past due.
Prioritization legislation is a way of making default sound
acceptable, not a way of preventing it. They want default to
sound manageable by promising to pay some of our bills.
Republican extremism is the single largest threat to the
American people. And if governing was the goal, they would
raise the debt ceiling just a they did THREE times under the
former president. Even the most skilled Republican legislator
of our time, Leader McConnell knows this legislation is a sham
and wouldn't stand a chance in the Senate. This legislation
doesn't protect anyone. It's a haphazard attempt to cover up
their inability to govern, and the American people will see it
for what it is.
The ``Pay China First'' bill would make my Republican
colleagues responsible for:
Delays in Social Security checks;
Putting our military at risk;
Veterans not getting their benefits;
Banks and small businesses collapsing;
Jobs disappearing, and more.
We can't predict just how bad this would be because it's
never happened before, but what we do know: Republicans don't
have a plan. Even TALKING about default has real consequences.
This is now the fourth time in the last decade that Republicans
have set us off on this course.
Back in the summer of 2011, the Republican impasse caused:
The Treasury was forced to spend $1.3
billion more in interest payments, according to a
Government Accountability Office estimate.
And of course, who could forget that the
U.S. credit rating was downgraded for the first time in
our history.
Republicans followed up in 2013 and:
An estimated 120,000 jobs were lost.
Rates for commercial paper rose as a direct
result of the standoff, disrupting private markets.
Then to the most recent dispute, in 2015:
For the first time ever, Treasury was forced
to postpone the release of a new bond due to lack of
demand; a major blow to our credibility;
And bill supply declined by $210 billion
after Treasury was forced to reduce bill issuance.
These are costs to taxpayers, and when the Republican
extremism before us now is injected into our financial markets,
taxpayers will bear the brunt in higher costs.
The fact we are even having this conversation is a
dereliction of duty. When the American people entrusted
Republicans to govern, we saw the calamitous effects in 2011,
2013, and 2015, I urge them to learn from those mistakes and
put the country ahead of political games. With that, I yield
back the balance of my time.