Hi Friend,
Here at No Labels, we’ve been laser-focused on the debt ceiling crisis, especially since U.S. Treasury Secretary Janet Yellen announced this week that default could happen as soon as June 1st. The markets are showing signs of nervousness – would you believe it now costs more to insure U.S. Treasury bonds against a default than it does to insure the bonds of Portugal, Ireland, or the Czech Republic on the international markets?
As you may recall, partisan debates over raising the debt ceiling have brought our country to the brink of default before, with severe consequences. In 2011, the gridlock resulted in the first-ever downgrade of our nation's credit rating. And in 2013, the fighting led to a weeks-long government shutdown that left hundreds of thousands of federal workers furloughed.
With our debt now a staggering $31.7 trillion – double where it stood a decade ago – it's crucial that our leaders work together to avoid default while also taking meaningful steps to tackle America’s underlying debt problem.
Thankfully, there is already a blueprint for such a deal, as a bipartisan framework has been proposed by the House Problem Solvers Caucus. It’s a commonsense approach supported by 32 Democrats and 31 Republicans with the following goals:
- Suspend the debt ceiling through Dec. 31, 2023, and if the remaining steps are followed before then, increase it through Feb. 28, 2025 — after the 2024 elections;
- Establish an independent commission to recommend a package to stabilize the debt and deficit, which would be voted on by Congress;
- Adopt controls for the 2024 federal budget to stabilize the deficit in the near-term; and
- Change the budget process, requiring appropriations bills and budgets to go through the full committee process, having the Government Accountability Office put out an annual "fiscal state of the nation" report, and mandating a mid-year budget report from the president.
At No Labels, we are unified in our support for a commonsense solution that meets America’s challenges. We are hopeful that our leaders will settle on a strategy that avoids defaulting on the debt of the oldest continuously operating democracy in the world and finally starts chipping away at our spiraling debt.
You can play a part in this crucial conversation by contacting your members of Congress and encouraging them to put country before party and add their name in support of a deal based on the bipartisan framework put forth by the Problem Solvers Caucus.
Together, let’s make sure our leaders know we support them in avoiding a debt ceiling disaster.
Margaret White
Co-executive Director
