John,
If Congress doesn’t raise the debt ceiling on or around Thursday, June 1st, the United States will default on its debts for the first time in our nation’s history.
But this is a manufactured crisis.
Instead of entering these negotiations in good faith and willingness to work across the aisle, House Republicans have passed a cruel, callous bill that would only raise the debt ceiling on the backs of people with disabilities, the aging, and those whose incomes are low.
If House Republicans have their way, in order to raise the debt ceiling the federal government would have to cut $3.6 trillion from programs that fund housing and home energy aid, education from preschool through college, mental health and substance use treatment, child care, medical research, and much more.
Their bill would place 1 million children at risk of losing TANF income assistance, with half of these thrust into deep poverty (for a family of 3, that’s below $1,000 per month). SNAP’s harsh time limits and work requirements would be expanded to include recipients aged 50-55—people who are most likely to experience major obstacles to work, such as age discrimination and health-related issues that prevent them from being hired. It would apply the same bureaucratic hurdles to Medicaid, placing millions of people at risk of losing health care coverage, while research shows the vast majority who are dropped will really remain eligible—and that such restrictions do nothing to increase employment.
The House-passed bill is cruel and would harm millions of people, families and vulnerable communities. Send a message to Congress demanding that they increase the debt ceiling without draconian cuts to critical programs.
TAKE ACTION
Republicans are willing to send the U.S. into an economic free-fall, but not if it means inconveniencing the ultra-wealthy. In the same legislation that proposed draconian cuts to essential programs and services, Republicans also included a provision to take back most of the $80 billion investment in the IRS that was included in last summer's Inflation Reduction Act—the bulk of that money was to go towards increased enforcement measures against wealthy tax dodgers.
And, just this week, the chairman of the powerful Ways and Means Committee, Jason Smith (R-MO) announced that he wants a tax package done by his birthday on June 16th. The tax package he’ll propose will have hundreds of billions in corporate tax breaks. It’s also likely to extend or make permanent ALL of the Trump tax cuts for the rich and corporations, which the Congressional Budget Office indicates would add an additional $3.5 trillion to our national debt.1
President Biden has already said that work requirements for Medicaid are off the table, that an agreement must not push people into poverty or put food assistance at risk, and that we cannot cut our way to solving our debt crisis. In his fiscal year 2024 budget, President Biden proposed quadrupling taxes on stock buybacks. And, this year, the president has called for Congress to pass a Billionaire Minimum Income Tax to make the ultra-wealthy pay their fair share and allow all Americans to share in the prosperity that makes us the richest nation in the world.
Continuing to give tax cuts to the wealthy will only increase our national debt—both fiscally and morally. It’s unjust to demand those with the least suffer more so that those with the most don’t have to. Congress must do what is economically and morally right and raise the debt ceiling without cutting programs for the poor, disabled, and aging.
Congress must hear our voices and resist this Republican hostage-taking by increasing the debt ceiling without cuts to essential programs.
Thank you for all you do to support the most vulnerable,
Deborah Weinstein Executive Director, Coalition on Human Needs
1 Budgetary Outcomes Under Alternative Assumptions About Spending and Revenues
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