Aloha, Friend.
I redeye back to D.C. tonight after a full week of district work. The most critical issue we face in Congress is the debt ceiling, and I want to explain way-too-briefly what that is, why it’s so important, and what I believe we must do about it.
Debt Ceiling
Like most governments, businesses and families throughout the world, our federal government borrows money to partially fund federal operations and manage federal finances from year to year. This money comes mainly from individuals, businesses and other governments around the world who want to invest in U.S. government bonds and other financial instruments because we have the best credit in the world. There is nothing basically wrong with this system, and in fact it is a key part of our country’s economic and financial leadership of the world, in addition to our ability to fund critical federal programs.
However, for over two decades now we have not operated our federal finances on a prudent and sustainable basis. Our annual deficit (the amount by which outgoing expenses for government programs exceed incoming revenues from taxes and other sources) has continued every year, requiring more and more borrowings to make up the difference. Our total federal debt today stands at some $31.5 trillion, almost double the $16.7 trillion in 2013. Worse, our total debt as a percentage of our total economy (debt-to-GDP, meaning the ability of our economy to sustain reasonable debt levels) has grown rapidly to one of the highest levels in the world, at 123%, and interest on our national debt is our fastest-growing major federal expense.
Federal law places a limit on the total amount our federal government can borrow (known as the debt ceiling or debt limit), and Congress must amend that law to lift the ceiling and allow further debt, as we have done in past years with or without conditions. We actually reached the current legal limit in January of this year and have been funding federal programs and repaying investors through “extraordinary measures” since. However, according to the U.S. Treasury Department, our ability to do so runs out in June in just a few short weeks, and we must lift the debt ceiling by then or face a first-ever default on our national debt. The consequences of that would be very severe: investors would be less likely to loan to us, at least on current favorable terms; global economic and financial markets who rely on the stability of our finances would be disrupted, as would critical federal programs; our debt would increase substantially; and there would be other consequences difficult to predict since we have never defaulted before.
Clearly, we must lift the debt ceiling by June. The disagreement in Congress and the White House is whether that should be a “clean” (unconditional) increase, or whether it should be accompanied by actions that address our underlying and worsening fiscal unsustainability, the reasons why we are here to start with.
I am in the second camp. We have been kicking the can down the road for two decades now during which our federal finances have deteriorated to truly alarming levels. While we cannot default on our federal debt, we also cannot ignore any longer the underlying causes of this crisis, and must set ourselves on a better fiscal path at the same time. My bipartisan Problem Solvers Caucus (here) Debt and Deficit Working Group, which I co-chaired, developed a Debt Ceiling Framework which was endorsed by our Caucus; details here. As negotiations in Washington, D.C. hit full stride, our Caucus is advocating for our Framework as a reasonable and prudent path out of this crisis.
(For more information on the debt ceiling, here is a Congressional Research Service report.)
April 2023 Constituent Survey Results
In my last e-newsletter to you here, I asked for your input through an anonymous online survey here. As always, I want to share what you told me.
What’s most concerning you now? (Respondents could list up to five; top ten responses listed)
Economy/cost of living 47%
Crime/public safety/gun violence 45%
Environment/climate change 38%
Political division/polarization/gridlock 36%
Federal spending/budget deficits/debt 35%
Social Security/Medicare/kūpuna 34%
Roe/abortion/right of choice 26%
China 22%
Economy/business/jobs 22%
Education/childcare/keiki 21%
How much are you being affected by inflation and higher costs of living?
Somewhat affected 60%
Seriously affected 30%
Not affected 9%
If you are being affected by inflation and higher costs of living, which areas are affecting you most? (Respondents could list all that apply)
Food 83%
Utilities/electricity 58%
Household goods and supplies 57%
Transportation/auto/gas 55%
Health care 32%
Recreation 13%
Education 6%
What are your views on our response to Russia’s invasion of Ukraine?
Current approach (defense and
humanitarian aid but no troops)
is adequate 39%
Increase U.S. aid to Ukraine for
defense and humanitarian needs 33%
Decrease U.S. aid to Ukraine 20%
Increase U.S. aid for humanitarian
but not defense needs 3%
Deploy U.S. troops to Ukraine
to assist in Ukraine’s defense 3%
How concerned are you about the People’s Republic of China?
Very concerned 47%
Somewhat concerned 35%
Not concerned about 8%
I deeply appreciate the full and diverse participation in my survey. The results largely reinforce what I have heard from you separately, and continue to guide my agenda on Capitol Hill. I spoke to and answered questions on many of these issues in my recent Talk Story community meetings (see the link below to a video of one of them), and there is much more information on my efforts in each of these and other areas at case.house.gov. If you have any questions or further input, please contact me at [email protected].
District Work/Talk Story Recap
Although most of my time and work is in Washington, D.C., my district work periods back home are critical for me to stay in close touch with all parts of my large and diverse district, to join in community events and to talk with those I represent where you live and work. Last week, as one example, my events included: Radford High School; UH Mānoa Awards Ceremony; ‘Ōlelo Community Media; Mililani Mauka Fire Station/HFD Chief Hao; Waipahu Post Office; UH/Hawai‘i Information Warfare Center Cybersecurity Interns; Dr. Adam Robinson/Veterans Admin Pacific Islands Health Care System; Spark Matsunaga VA Medical Center/Tripler; Farrington High School; Federal Aviation Admin. Honolulu Air Traffic Control Center; Patricio Battani of HI SIS; Alicia Moy of Hawai‘i Gas; Honolulu City Council Chair Tommy Waters; Congressional Art Competition Awards Ceremony/Bishop Museum here; UH West O‘ahu Graduation Ceremony; and Filipino Fiesta at Fil Com Center/Waipahu.
I especially appreciated hitting the road again in mid-April for my first in-person Talk Story with Congressman Ed Case open community meetings in three years, when my staff and I hosted six Talk Stories in six days throughout my district from East Honolulu to Central Honolulu, ‘Aiea/Pearl City, Mililani, Waipahu and ‘Ewa/Kapolei. As we enter a very intense period in Congress with the debt limit, appropriations, and so many other critical issues, these events were invaluable in keeping me connected and aligned with all I represent. Here is a full replay of one of my Talk Stories.
