Original Cosponsors: Swalwell, Hinojosa, Vargas
On October 1, The Treasury announced that it would exhaust extraordinary measures on the debt limit by November 5. It is time to act now to protect the full faith and credit of the United States and end the irresponsible brinksmanship and dysfunction that has characterized our legislative process.
This impending default would do lasting damage to our economy and place our entire financial system at risk. In 2011, S&P downgraded our nation’s credit rating for the first time. In 2013, the debt ceiling and government shutdown crises cost Americans 120,000 jobs and set back the recovery.
If the United States defaulted, or even verged on default, many financial transactions would become impossible, and some banks could become insolvent. We would see an instant increase in the government’s borrowing costs, and a plunge in the value of government securities held by individuals, pension funds and other countries.
How many times must we play this same game before we decide that enough is enough?
I ask you to help me install a permanent fix that would end the brinksmanship surrounding the debt limit. The Pay Our Bills Act would codify the mechanism employed in recent debt limit adjustments and help us avoid the economic anxiety of this hostage-taking ritual.
This bill allows the debt limit to be raised unless a supermajority of Congress votes to block such action within 15 days, and would permanently shift the role of Congress to disapproving debt-ceiling increases instead of being forced to approve them.
For the health of our economy and to provide certainty to business leaders, investors, and the American people, please join me in supporting this sensible reform. To become an original cosponsor or for more information, please contact Alice Lin at Alice.Lin@mail.house.gov or 5-2631.
Michael M. Honda
Member of Congress