Dear Friend,

As you may know, the U.S. will soon hit the debt ceiling, an arbitrary limit on the amount of bonds the U.S. can issue to pay the nation’s bills. In order to avoid our nation defaulting on its debt – an unprecedented act that would lead to financial catastrophe – Congress must again raise or suspend the debt limit. 

In 2011, Republicans in Congress created a debt ceiling crisis that resulted in the first ever downgrade to the U.S. credit rating, wiping out $2.4 trillion of U.S. household wealth. Today, just like in 2011, Republican lawmakers in Congress are using the threat of default as a negotiating tactic to advance the extreme budget cuts in their debt limit legislation. According to a recent report from Moody's Analytics, Republicans' proposal would destroy nearly 800,000 jobs and heighten the risk of a recession—causing real harm to American families and to our economy. 

That’s why I was proud to introduce the End the Threat of Default Act, a bill that would repeal the national debt ceiling and end the toxic brinkmanship surrounding its negotiations once and for all. With 42 Members of Congress signing on in support of my bill, it is the leading effort in Congress to permanently address the debt ceiling crisis.

The United States is one of only two democratic countries with a statutory debt ceiling, and the only one that could single-handedly cause a global recession. Since 1960, Congress has acted more than 75 separate times to raise, temporarily extend, or revise the definition of the debt limit. This includes three separate times during the Trump administration.

In practice, the debt ceiling has no impact on government spending – which is authorized and approved through the federal budget and appropriations process. Instead, the debt ceiling restricts the U.S. Treasury from paying for expenditures already made by Congress. Threatening to default on our debt is the same as ordering an expensive meal at a restaurant, eating it, and skipping out without paying.

By eliminating the debt ceiling through the End the Threat of Default Act, Congress can prevent our national debt from being weaponized for partisan budget negotiations. We can and should have a real conversation about overall spending, but the full faith and credit of the United States must never be compromised.

As your Member of Congress, I’ll always fight to protect our economy and the livelihood of hard-working American families from dangerous partisan tactics. As always, don’t hesitate to reach out to my office at any of the numbers listed below. 

Sincerely,

Bill Foster
Member of Congress