WASHINGTON – Today, Rep. Jamaal Bowman voted for must-pass legislation to prevent a first-ever default on the federal debt, which would result in economic catastrophe for nearly every American family. This crucial bill – which Senate Democrats passed on October 7, with all Senate Republicans present voting against – will keep the United States under the debt limit through at least December 3.
“Addressing the debt ceiling has long been a bipartisan obligation, and it’s inexcusable that Senate Republicans are refusing to do their jobs and pay off spending from under former president Trump — including the irresponsible tax scam to benefit the rich and massive corporations,” said Rep. Bowman. “While Republicans frequently claim to be the party of fiscal responsibility, they’ve shown their willingness to endanger millions of jobs and the economic health of our country. I’m glad that my Democratic colleagues and I were able to avert a disastrous default with a short-term measure, but it’s truly shameful that Republicans have rejected a longer-term solution.”
“It is widely understood that a first-ever default would bring unthinkable economic suffering to American families, and that must be avoided at all costs. We won’t allow Republicans to play games with people’s lives. As we go forward and explore solutions, we need to continue to have conversations about eliminating the debt ceiling entirely.”
With this legislation, which President Biden will soon sign into law, the federal government will be able to continue meeting financial obligations for another two months. This action only addresses previously approved spending, including bipartisan COVID relief, payments to Social Security recipients, payments of veterans’ benefits and paychecks for members of the military — and does not authorize future spending.
Senate Republicans continue to block action on a House-passed bill that addresses the debt ceiling through 2022 – risking a cataclysmic default that would trigger a global economic collapse and devastate the financial security of nearly every American family. A recent study by Moody’s showed that a debt default would:
- Wipe out $15 trillion in household wealth;
- Erase up to six million jobs; and
- Double the unemployment rate, surging up to nine percent.
Over the last decade, every time the debt limit has needed to be addressed, Congress has acted on a bipartisan basis – including three times under President Trump. Despite Republicans adding $7.8 trillion to the federal debt over the last four years – including a $2 trillion tax scam benefiting the rich – Democrats still helped Republicans address the debt ceiling, because the full faith and credit of the United States must never come under threat.
Now, under President Biden, McConnell and many Republicans refuse to join Democrats to address the debt limit – despite the fact that only 3 percent of the current debt was accumulated under President Biden, and more than 27 percent was incurred under President Trump. Meanwhile, just two years ago, Senate Minority Leader Mitch McConnell agreed that “America can't default” because “that would be a disaster.”
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