Hoyer Statement on Bipartisan Agreement in Principle to Avoid Default

WASHINGTON, DC – Congressman Steny H. Hoyer (MD-05) released the following statement today on the reported details of the bipartisan agreement in principle to avoid default: 

"In the past few weeks, House Republicans have resorted to demagoguery, referred to the American economy as their 'hostage,' and threatened to force our nation to default on its bills just to push for draconian spending cuts that they know are both unreasonable and unpassable. Their continued cowing to the most extreme among their ranks led their party to endorse reckless brinkmanship that made an unthinkable economic catastrophe a real possibility. President Biden’s effort to neutralize the threat that Republicans pose to our economy and national security should be commended. 

"Republicans could have completely eliminated the risk of a default months ago by passing a clean debt limit increase, just as Democrats did three times under President Trump without demanding concessions and holding the economy hostage. Democrats agree that we ought to address the debt. That's why we enacted the Inflation Reduction Act, which brought down the deficit by hundreds of billions by making the most profitable corporations pay their fair share in taxes and enforcing the laws on the books. By contrast, with their radical Default on America Act, House Republicans made it clear that they would rather have the American middle class pick up the costs of lowering the deficit. 

"Once again, Democrats must step in and steer America away from economic calamity. Forced to confront Republicans' disastrous default, President Biden has negotiated a deal. Although not desirable, this deal became the only one available to avoid catastrophic economic meltdown and represents a vast improvement over Republicans' Default on America Act. It provides bipartisan spending levels so that our appropriations process can proceed, extends the debt limit through the end of 2024, and prevents the worst of the disinvestment agenda proposed by House Republicans. We owe these improvements to the tireless efforts of OMB Director Shalanda Young, Counselor Steve Richetti, OLA Director Louisa Terrell, and other White House negotiators. I also recognize that they had to make difficult and unfortunate concessions to preserve the full faith and credit of the United States. 

"I regret House Republicans' insistence on capping non-defense discretionary spending, which would limit funding for many federal programs that are crucial to the American people, as I am concerned about the implications of an automatic CR.

"As Ranking Member of the Financial Services and General Government Appropriations Subcommittee, I also strongly object to the Republicans' demand to cut the Internal Revenue Service’s ability to crack down on tax fraud and help enhance customer service for American taxpayers. Cutting these funds undermines the IRS’ ability to go after tax cheats who do not pay their fair share, all while putting an additional burden on law-abiding, tax-paying Americans. 

"Further, as Chair of the Regional Leadership Council, I have seen how the Investing in America agenda we passed last Congress is making a positive difference in the lives of the American people. Although we fended off the worst attacks on that agenda, I fear that the Republicans’ piecemeal efforts to undermine the historic legislation we passed in the 117th Congress will adversely affect these policies' ability to promote job creation, fuel economic growth, and build new opportunities for Americans in every community across the country. I will keep fighting to ensure these laws are implemented as intended. 

"Despite these setbacks, we must save the American economy from Republicans’ irresponsible and radical plans to impose a damaging default. The failure to do so would have catastrophic impacts on every American, every family, and the global economy. We cannot allow the American people to shoulder the dire consequences of Republicans' inability and unwillingness to govern. That's why I urge my colleagues to join me in supporting this compromise legislation and to bring an end to this needless economic turmoil."