Republicans have created a default crisis that will undermine confidence in America’s commitment to pay its bills and drive up costs for American families—from mortgages, car loans, student loans, and small business loans to the costs of many consumer goods. The debt ceiling is not a bargaining chip, and Republican plans to prioritize some payments over others amount to, in the words of Treasury Secretary Janet Yellen: “default by another name.” What’s more, this brinkmanship jeopardizes the stability of U.S. and global financial markets at a time of increased global uncertainty. Congress must act to cover existing obligations before the steep costs to the American people worsen.
Democrats passed the Inflation Reduction Act last year to bring down costs for families and reduce the deficit by almost $240 billion. Not a single Republican voted in support of the bill. Now Republicans want to use the debt ceiling to force irresponsible cuts to crucial funding and put vital programs at risk, while pushing to let the rich cheat on their taxes. The costs to the American people could not be higher.
