A recent report by the Joint Economic Committee states that a debt default would have unimaginable consequences for Virginia’s Fourth Congressional District.
Yesterday, Congresswoman Jennifer McClellan issued a statement in response to Speaker Kevin McCarthy’s “Limit, Save, Grow Act of 2023.
She said the budget plan would jeopardize Social Security payments for 98,000 families in her district and disrupt roughly $164 million per month in Social Security income. In her district, 315,000 residents would be at risk of losing their health benefits through Medicare, Medicaid or Veterans Affairs coverage.
“Furthermore, it would cost Virginia families an additional $150 per month in mortgage payments and cause small businesses across the country to pay as much as $2,500 more in loan payments,” McClellan said.
She said McCarthy’s proposal “is filled with cruel cuts that will hurt everyday Americans who rely on crucial federal programs and assistance. It is a dangerous and desperate attempt to advance spending cuts and policy wish lists while holding our nation’s economy hostage. Raising the debt ceiling is about ensuring the United States can pay its bills and protecting the stability of our economy.”
McCarthy’s budget proposal would cut funding for schools and take away access to childcare, raise mortgage rates and remove thousands of families from their homes. The budget would also cut food assistance from low-income and older Americans, and open the door for corporate polluters to poison communities and undermine key climate and clean energy policies passed by Democrats last Congress.
“We need to cleanly raise the debt ceiling without strings attached. Under the last President, congressional Democrats helped raise the debt ceiling three times without tying it to policy considerations or spending cuts. Republicans needs to stop the debt ceiling brinkmanship and help ensure we protect the full faith and credit of the United States,” McClellan said.
She said a debt default would “be catastrophic for our economy and everyday Americans. It would unnecessarily raise costs on car payments, student loans, mortgages and credit card bills; seniors would lose access to their Social Security checks; veterans may stop receiving the benefits they rightfully earned; and people near retirement will lose tens of thousands in savings.”
“Speaker McCarthy and House Republicans need to stop the political posturing and come together with congressional Democrats to raise the debt ceiling. It’s time they put the interests of the American people above the interests of their party.”