Providing For Consideration Of H.R. 2119, Family Violence Prevention And Services Improvement Act Of 2021; Providing For Consideration Of H.R. 3110, Providing Urgent Maternal Protections For Nursing Mothers Act; Providing For Consideration Of H.R. 3992, Protect Older Job Applicants Act Of 2021; Relating To Consideration Of Senate Amendment To House Amendment To S. 1301, Promoting Physical Activity For Americans Act; And For Other Purposes
Mr. Speaker, let me thank the distinguished gentleman from Massachusetts and my friends on the other side of the aisle. The good news is that Democrats, and I hope some good friends, some Republicans, will not kick American families down…
Mr. Speaker, let me thank the distinguished gentleman from Massachusetts and my friends on the other side of the aisle.
The good news is that Democrats, and I hope some good friends, some Republicans, will not kick American families down the aisle and down the road. That is why we are here today, to ensure that those human beings will not be kicked down the road.
I am stunned by the actions of my friends that would not support the paying of your bills.
Let us not discard the reality of what lifting the debt ceiling means. It is the bills that have already accrued. It is the light bill; it is the telephone bill; it is the heat bill; it is the tuition for college. Those are bills that have accrued that we are paying for. That is the example the American people ask.
Then we are trying to work together to ensure that lead poisoning that is killing our children in water--that the INVEST Act is ready to go with the Build Back Better, that broadband is ready to go with the Build Back Better.
Then, of course, we want to do something innovative. The housing crisis in
America is unbelievable. Homelessness is on the rise. Veterans who have pledged their life to us as Americans and who have put on the uniform unselfishly are homeless in droves. They are homeless in big cities, like Houston, Los Angeles, New York, and Chicago, and in rural areas. None of that is attributed to local leaders.
When I was home yesterday interacting with the engine of the economy--construction companies and workers and engineers--they begged for having us come together, INVEST Act, Build Back Better. This bill includes a $35 billion investment in the HOME Investment Partnerships.
We want to make sure that Medicare is strong, Federal Medicaid. We want housing, climate change, the immigration reform. There are many elements that will stop pushing the American people down the road like a can and just keep saying to them: We will get it one day. We will get it another day.
Provide education for all those workers who were stymied during the pandemic. Stop the eviction of individuals who I saw come out into the street.
Mr. Speaker, I include in the Record an article from The New York Times.
[From the New York Times, October 8, 2021]
What the Debt Ceiling Means for Social Security and More
The federal government is about two weeks away from being
unable to pay its bills--and that could delay benefit
payments to tens of millions of retirees, Medicare and
Medicaid providers, and numerous others receiving checks from
the U.S. Treasury.
Running into the federal borrowing limit could lead to a
catastrophic default on the nation's debt. Once the
government reaches the ceiling--and exhausts all other
measures to keep payments flowing--it will run out of funds
for bills it has already promised to pay.
To avoid such a calamity, Democrats are weighing a change
to filibuster rules in order to hold a vote. Senator Mitch
McConnell of Kentucky, the minority leader, has suggested
allowing a temporary increase until December, although that
would merely postpone a default deadline for a matter of
weeks.
The government has never defaulted on its obligations, so
what would happen is unclear. But the effects could be wide-
ranging, covering programs as varied as Social Security
benefits and school lunches.
``There is no public playbook for what to do when you
breach the debt limit,'' said Marc Goldwein, senior policy
director at the Committee for a Responsible Federal Budget, a
fiscal watchdog group. ``We don't know what will happen.''
What Programs Could be Affected?
A lot, covering a lot of people.
A default could potentially--but not necessarily--delay the
payment of Social Security benefits, which reach about 65
million Americans in some form.
It could also delay payments to government contractors,
including hospitals that accept patients who use Medicare and
Medicaid benefits. If the situation dragged on for weeks or
months, it could threaten access to health care, Whitney
Tucker, the deputy director of research on the State Fiscal
Policy team at the Center on Budget and Policy Priorities,
said in a recent note.
Some state-run programs that use federal money, like those
providing free or reduced-cost breakfast and lunch to low-
income students, might not be immediately reimbursed. The
Supplemental Nutrition Assistance Program, formerly known as
food stamps, would also be affected.
And it would probably halt payments being made to families
under the newly expanded child tax credit, which in July
began sending eligible families half of the credit in monthly
installments. Roughly 35 million families received the
benefit in July.
When Could this Happen?
That's not totally clear. The Treasury secretary, Janet L.
Yellen, has said the government will hit the debt ceiling on
Oct. 18. But some analysts believe the actual date could be
pushed back a few days, or perhaps longer.
It's important to note that this situation is different
from a government shutdown, which happens when Congress fails
to pass bills that permit new spending. White House officials
warn that running into the debt ceiling is far more damaging.
Won't the Government still have some money?
Yes, the Treasury will have some revenue coming in--from
estimated quarterly income taxes, excise taxes and other
sources--but the department has maintained that it does not
have the authority to pick and choose which payments it will
make.
``There is only one viable option to deal with the debt
limit: Congress needs to increase or suspend it, as it has
done approximately 80 times, including three times during the
last administration,'' a Treasury spokesman said.
But if no agreement is reached, some policy experts say
that the Treasury may ultimately have to pick winners and
losers--and that's a difficult bind, because there are
several conflicting laws at play.
The law says the government cannot borrow once it hits the
debt limit, but the 14th Amendment to the Constitution says
that the United States must honor its obligations. Other laws
state that certain benefits and salaries must be paid.
Is there anything else the government could do?
The Treasury might decide to issue more bonds anyway and
leave it to the Supreme Court to figure out the
constitutional questions, said Len Burman, an institute
fellow at the Urban Institute.
``They could ignore the debt limit,'' he said. ``It is a
question that has never been adjudicated because it hasn't
come up before.''
But previous administrations have rejected that approach,
he said, and legal experts don't agree about whether it would
actually work.
What about Social Security?
Social Security--which reaches tens of millions of
Americans through retirement, disability and survivor
benefits--is a bit different from other programs because it
is largely financed through a dedicated payroll tax. It also
has its own trust funds, which may give it more flexibility,
some experts said.
The taxes coming into the program aren't enough to pay all
of the benefits, according to Jason J. Fichtner, chief
economist at the Bipartisan Policy Center, who held several
positions, including acting principal deputy commissioner, at
the Social Security Administration. But since the checks are
sent out on a staggered basis, the agency could wait for more
cash to come in, which would result in delayed payments.
But there's also at least one other possibility. If the
Treasury redeemed the special-issue bonds from the program's
trust fund to pay benefits--and then quickly replaced them
with newly issued bonds--that wouldn't raise the debt
ceiling, Mr. Fichtner argues.
It's not clear whether the Treasury agrees with his
assessment.
What else could happen?
If the United States were to default on its debts--that is,
stop making payments on the Treasurys it has sold--there
would almost certainly be major consequences in the global
markets.
The immediate effect would be that portfolios held by
investors as varied as pension funds and holders of 401(k)s
would face a market tailspin. Even after any debt-ceiling
standoff were resolved, global investors would demand higher
interest payments on U.S. Treasury bonds--so the government's
borrowing in the future could become more expensive.
A default may also make it more difficult for consumers to
secure loans, and they would most likely pay more when they
did.
``In the case of a debt default, it would quickly spark a
credit crunch so the issue for borrowers becomes much more
about whether you can get a loan in the first place,'' said
Greg McBride, chief financial analyst at Bankrate.com.
``Lenders would likely freeze or cut credit lines on home
equity lines of credit and credit cards. Personal loans would
be harder to get and could see higher rates.''
What if the problem isn't quickly resolved?
An extended impasse would cause significant damage to the
U.S. economy, Wendy Edelberg and Louise Sheiner, both senior
fellows at the Brookings Institution, a research group, wrote
in a recent report.
``Even in a best-case scenario where the impasse is short-
lived, the economy is likely to suffer sustained--and
completely avoidable--damage, particularly given the
challenges that Covid-19 poses to the health of the
economy,'' they wrote.
If it dragged on through November, the federal government
would have little choice but to significantly slash
government spending by roughly $200 billion--a
``devastating'' blow to the economy, Mark Zandi, chief
economist of Moody's Analytics, said in a recent analysis.
And the increased expense of borrowing would only add to
the hit in the long run.
``Americans would pay for this default for generations,''
he said.
Mr. Speaker, I include in the Record an article from Forbes.
[From Forbes, Oct. 4, 2021]
Defaulting on the National Debt Ceiling Would Be Catastrophic for Small
Businesses
Here we go again. It seems every time this issue arises,
lawmakers seem intent to put the U.S. economy and small
businesses at risk.
Unfortunately, the U.S. Department of Treasury Secretary
Janet Yellen has said that the federal government will run
out of money on October 18 if the debt ceiling is not raised.
The government reached its debt limit at the end of July and
Treasury has been taking steps to keep from defaulting. If
the debt ceiling is not raised in the coming weeks, the U.S.
will default on its debt for the first time in its history
and that will be catastrophic for small businesses.
There is no question that our national debt needs to be
addressed in the coming years with a mixture of revenue
raises and spending cuts as the Clinton Administration did in
the 1990s. However, defaulting on the debt is not the answer.
It will not be some teachable moment on government spending.
Instead, it
will have unnecessary and irreversible consequences for
almost all Americans. A Navigator survey also found that 58
percent of Americans support raising the debt ceiling.
Unfortunately, this has become a political issue. Just a few
days ago, Senate Minority Leader McConnell blocked Democrats
from using a simple majority to get this done.
Why? Republicans may want to use this as a campaign issue
against Democrats this coming fall trying to claim that they
are growing the national debt. But, the real story is, the
national debt has risen regardless of which party is in
control. There will be a time when Republicans will be in the
driver's seat and need to raise the debt limit, and let's
hope Democrats move beyond politics because playing
``chicken'' with the debt limit is not good politics, not
good for small business, not good for our national security,
and not good for the economy. In fact, an analysis by Moody's
Analytics chief economist Mark Zandi estimates that
defaulting on the national debt would wipe out as many as 6
million jobs and erase $15 trillion in household wealth.
``We can't emphasize enough how disastrous it would be for
Congress to consider a government shutdown if consensus
cannot be met in advance of the funding deadline. Small
businesses are especially vulnerable and many would not
survive a government shutdown at this time due to the
pandemic, particularly with the rapid spread of the Delta
variant, and trying to move from crisis to recovery,'' wrote
Candace Waterman, President and CEO of Women Impacting Public
Policy, in a letter to U.S. House and Senate leadership.
Here are five ways defaulting on the national debt would
harm Main Streets across the country.
1. More Expensive Small Business Loans
A majority of credit rating agencies rate the U.S. federal
government at AAA, the highest level. Defaulting on the debt
would lead to an automatic downgrade of the country's credit
rating, driving up interest rates for all Americans. Small
business loans will become costlier as private lenders are
forced to increase their interest rates. Even Small Business
Administration (SBA)-guaranteed loans, which are often lower
cost and more accessible but still reflective of market
conditions, will become more expensive.
2. Higher Credit Card Interest Rates
Many small business owners use their personal credit cards
to cover business expenses and manage debt. As with loan
rates, small business credit card and personal credit card
interest rates will also rise, squeezing the amount of
capital small business owners have to work with and
potentially driving them into more debt.
3. Tightened Credit Markets
One can look at the stories of Argentina and Greece to see
what happens to a country's credit markets when it defaults'
on its debt. The same will be the case for the United States
if it follows in these countries' footsteps. Credit markets
will tighten up and U.S. banks will prioritize lending to
businesses where they have pre-existing relationships, which
are more likely to be larger ones than small ones. Small
businesses, especially unbanked ones and those in underserved
communities, would be at a severe disadvantage when they have
the least financial cushion.
4. Plunging Stock Markets
Moody's Report estimates that stock prices would likely
plunge by one-third, sparking that $15 trillion loss in
household wealth. This would be a one-two punch for small
business owners who would see their own retirement savings
dissipate and then lose business from consumers who are now
dealing with their lost nest egg. In turn, larger public
companies could lose value, thus making it harder to
incorporate small businesses into their vendor supply chain.
5. Delayed Treasury Payments
The Treasury Department has been taking steps to meet its
obligations, including payments to households such as Social
Security. If the U.S. default on its debt, the government
would immediately need to stop more than 40 percent of
expected payments, including Social Security and other
household income. There are a number of downstream effects
this would have on small businesses, including a loss of
customers and a strain on business owners and employees now
taking steps to make ends meet for themselves and their loved
ones.
The American economy and its Main Streets are working
through their greatest crisis since World War II. Both are
still standing right now but a default on the national debt
would be a knockout blow. Let's stop playing politics and get
the debt limit raised. Once that's done, we can return to the
important work of getting an infrastructure bill passed that
has the ability to pave the way for the next generation of
American small businesses and entrepreneurs.
Mr. Speaker, let us do the debt extension that the Senate has given us, but let us not accept this paltry extension. Do it right in December and save the American people. Build Back Better and the INVEST Act, do it together. Do it now.
Mr. Speaker, I rise today in support of the Rule governing debate of H.R. 2119, the ``Family Violence and Prevention Services Improvement Act,'' H.R. 3992, the ``Protect Older Job Applicants Act,'' H.R. 3110, the ``Pump for Nursing Mothers Act,'' and the Senate Amendment to the House Amendment to S. 1301, ``Temporary Extension of Public Debt Act.''