Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, thanks in part to filmmaker Steven Spielberg, there is renewed interest today in America's 16th President, Abraham Lincoln. A century…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, thanks in part to filmmaker Steven Spielberg, there is renewed interest today in America's 16th President, Abraham Lincoln.
A century and a half ago, during one of the most critical times in American history, Lincoln faced a nation divided by ideology and war. Only through fierce determination and moral courage was Lincoln able to preserve the Union.
Today, we again are in an ideological divide. Too often, Congress fails to agree on key social and economic issues.
Politics is winning out over progress. Like the America of the 1860s, the unwillingness to compromise has crippled our ability to move forward as a nation.
As we discuss America's fiscal responsibility today, I would like to share the words of Lincoln. One of my favorite quotes is this: ``You cannot escape the responsibility of tomorrow by evading it today.''
As a nation we have a responsibility to fulfill existing commitments to pay our bills, and it is a responsibility we cannot evade. As we know, the Federal Government officially hit its current authorizing spending limit--also known as the debt ceiling--on December 31, 2012.
Over the past month, the Treasury Secretary has been using extraordinary measures to continue funding the government and sending out Social Security checks and veterans' benefits. Treasury's action only bought limited time. The debt limit deadline was moved from December 31 to mid-February or early March. Needless to say, a feeling of uncertainty has spread across the country. However, on January 23, the House of Representatives approved a plan to ensure America can meet our obligations through May 18.
The bill, H.R. 325, which we have before us today, also provides an incentive for action on the Federal budget. The legislation includes a provision that would withhold the pay of lawmakers in the House or the Senate if their Chamber fails to pass the budget blueprint by April 15.
Since 1917, Congress has always taken appropriate action to avoid defaulting on America's bills. We must continue to fulfill our responsibility. We must not fail now. There is too much at stake.
Failure to pass this bill will set off an unpredictable financial calamity that would plunge not only the United States but much of the world back into recession and more. Every single American would feel the economic impact. There would be radical cuts in military salaries, veterans' programs, Social Security benefits, and education. Tax refunds may not be issued, and our country's credit rating would almost certainly be downgraded significantly.
I understand the concern over America's deficits and debt. I share those concerns, and I strongly believe we must develop a long-term plan to cut the debt and get America's fiscal house in order.
Let me remind you, over the past 2 years we have made real progress at cutting deficits and debt. We have done so working together across the aisle.
In 2011, we passed $1.4 trillion in spending cuts. Earlier this month, Congress passed legislation that reduced the deficit by another $600 billion. Together, with interest savings, these two actions will cut the deficit by about $2.5 trillion over the next 10 years.
Add to this the savings from winding down the wars in Iraq and Afghanistan and the savings to America's Federal budget reach almost $3.5 trillion over 10 years--all together $3.5 trillion over 10 years-- which we already are doing as a consequence of winding down the wars in Iraq and Afghanistan. That is real progress.
In the coming weeks we will have to confront the deficit issue again when sequestration of spending programs starts on March 1. March 27, the day the continuing resolution for appropriations expires, brings tough choices. That is why we are here, to make the tough decisions, to do the hard work.
The threat of defaulting on our fiscal obligations is extremely dangerous. It puts America on unstable ground. We all are aware how our political brinkmanship of 2011 led to the first ever downgrade of our country's credit rating. It sent shock waves in stock markets across the globe and nearly crashed the American economy.
We have the opportunity today to avoid that calamity. We have the opportunity today to avoid another destructive budget battle. H.R. 325 ensures America can meet our obligations through May 18 and provides the Congress with a necessary calm between fiscal storms.
The House of Representatives adopted the bill by a bipartisan vote, 285 to 144, and it is supported by the administration. The bill before us is necessary to remove the threat of default that would throw the U.S. economy into chaos. It gives us time to work together on a sensible, balanced solution to our Nation's fiscal challenges without undermining the Nation's economy. It deserves our support.
I congratulate Speaker Boehner on his leadership with regard to this issue and the House for its bipartisan approach to a tough but necessary vote. Let's pass this legislation today and move on to the debate over what further deficit reduction options we need to help keep America's economy moving forward.
In the words of Lincoln: ``The occasion is piled high with difficulty, and we must rise with the occasion.''
I yield the floor.
Mr. President, I rise to speak on two amendments. It will be the first amendment offered by the Senator from Ohio, his first amendment, and also I will speak on an amendment offered by the Senator from Pennsylvania. I think the Senator from Maryland, the chairman of the Appropriations Committee, will speak on the second Portman amendment.
I chuckled this morning. I see two new Members, very able Members of the Senate, who are now members of the Senate Finance Committee, follow their urges to offer amendments immediately to bills before the Senate. Senator Portman is doing that, Senator Toomey is doing that, and I commend them, very much commend them for being so interested in the subject and allowing their intellectual juices to flow and come up with something that is new and different and in their view might make some sense. I think part of this is because of the newly found efforts here in the Senate, and desire in the Senate, certainly among rank-and-file Members, to do something.
What you hear around here is: ``Regular order.'' That is something I very much subscribe to, namely let the committees do their work. Senator Portman and Senator Toomey are certainly following that tradition by offering amendments so the Senate Finance Committee, or in this case the Senate floor, is doing its work with respect to the pending measure.
I want to start by saying how much I appreciate the efforts of the Speaker, Speaker Boehner. He has done a good job giving us a few months' breathing room here in the Congress with respect to the debt limit increase; that is, having the House pass on a bipartisan basis a measure which extends the debt ceiling limit for another several months, to May 18. That gives us a chance to figure out how we are going to get our fiscal house better in order, cut the debt, and deal with some other vexatious issues such as the sequester and the continuing resolution.
The amendment, I must say, though, offered by my good friend from Ohio is a throwback to an effort that was undertaken essentially a year or two ago. With all due respect, it didn't work. What was that? Namely, it was the Sanders amendment, which is for every dollar increase in the national debt there be a dollar cut in Federal spending. This was something that was tried, the House of Representatives tried, the Speaker negotiated with the President, and it didn't work. Frankly, it led to a big confrontation, if you will, on August 11, where the debt was reaching its limit, there was no agreement on spending cuts, and the credit agencies began to downgrade U.S. credit. It didn't work. I again say I am very proud of the Speaker for trying a different approach.
It is also important to point out that if this amendment were to pass, we would have to send this bill back to the House. We are already now on a good track for the Senate to pass, without amendment, the House-passed bill. If that happens, then the world knows that the U.S. Government will not be in debt until at least May 18, and because of measures the Treasury Secretary will not exceed the debt limit until sometime in August.
We will be in debt. We have a big debt. The debt is about a $16 trillion debt, but we will not reach our debt limit if the House bill is passed by the U.S. Senate. In my judgment, it is very important that we pass this House amendment so that we in the Senate and the House of Representatives can get to work on how we reduce the debt and how we get our house in order as best as we possibly can.
I thank my friend from Ohio for his approach. Dollar for dollar, this has been attempted in the past. It has been rejected by the Speaker in the House of Representatives, and it has been rejected by the majority of the House of Representatives. This is an idea that was once tried, but it didn't work. I submit, with all due respect, it would not work this time either for the reasons I just mentioned and for the additional reason that it would further complicate an effort to increase our debt limit for a short period of time, which allows us to do our work.
I now wish to turn to the Toomey amendment. Again, I thank my colleague from Pennsylvania, a member of
the committee, for industriously coming up with an idea. I must say, with total respect, I don't think the idea works. Basically the idea is that when the debt limit is reached, the limit would be increased only for the purpose of addressing principal and interest on the debt held by the public or Social Security benefits and military pay, and that is it. The debt limit is automatically increased only for those three reasons and not for other reasons; that is, not for other programs the U.S. Government has an obligation to fund.
What are some of the other programs? Medicare, veterans' benefits, disability benefits, Medicaid, Pell grants, special education for disabled children, and highway funding. The list is extremely lengthy. I just mentioned a few.
What happens if the Toomey amendment is law? First of all, we have reached our debt limit. What are the credit markets going to think? What are credit agencies going to think? They are going to think, oh, my gosh, the U.S. Congress has not increased its debt limit but for essentially on a daily basis Social Security, interest on the debt, and military pay. It is not for military procurement or men and women in the Air Guard. It is just military pay. It sounds as though it is just for active-duty pay. Think of what will happen. Think of the chaos. Other agencies are not going to know whether they will be funded. They have no idea. According to the Toomey amendment, it is up to the Treasury Secretary to prioritize. How can he do that when there is no money there and the debt limit is not increased? Frankly, I cannot believe this amendment is even offered. With all due respect to my friend from Pennsylvania, it is so nonsensical.
With respect to the two amendments that are offered here, the first being the Portman amendment, I say to my friends, it has been tried in the past and it didn't work. It didn't work when the President and Speaker were trying to negotiate a deal on August 11. It caused chaos in the markets. That is one of the reasons the markets fell so much in August of 2011.
If this amendment is agreed to, it will have to be sent back to the House. It will mean putting this issue of extending the debt limit increase for 3 months in tremendous jeopardy. I don't think we want to do that. I think it is the wrong thing to do.
The second amendment, the Toomey amendment, is totally unworkable. It will cause even more chaos at a time when we are trying to calm the markets, at a time when we are trying to get more confidence, more credibility, not less. In my judgment, both--especially the latter-- will result in a lot more worry in the markets, not more confidence. It will create more worry, more uncertainty, and for those reasons I think these amendments should be rejected.
I yield the floor.
Madam President, on January 23, something marvelous happened. What was that? The House, on a strong bipartisan basis, passed a bill which would raise the debt limit, which would extend the debt limit to May 18. It was bipartisan. Speaker Boehner is to be commended.
This town is criticized for its lack of working together because it is just too partisan. Speaker Boehner found a solution to help us relieve the pressure so we can get our job done and get the deficit spending under control.
The method suggested by the Senator from Ohio is a step backward. We have tried that. We tried that a couple of years ago, and it didn't work. We all remember August 11, when the markets basically collapsed when the credit agencies began to downgrade our debt.
So I say let's follow the lead of the bipartisan Speaker, who found a way through great leadership to pass a provision. We should pass the same provision because if we don't, then we will be back to chaos.
Amending the provision means it has to go back to the House. If you think the markets are in disarray today, just think of the lack of confidence that would prevail if this amendment were to succeed.
Madam President, I move to table the Portman amendment and ask for the yeas and nays.