Unique: The White House is warning that failure to raise the debt limit would threaten US national security and have wider “implications” for military families.
Granthshala News obtained a White House memo on Wednesday that outlined the “consequences of the default” for national security and military families.
Debt limit: With Schumer bound to meet CEO, McConnell on standoff: Live updates
“At a time when liberal democracies are being challenged to deliver for their people, by autocrats abroad, there is no longer an opportunity to undermine the credibility of America’s ability to govern,” the White House memorandum said. there’s no time.” “If America defaults on its obligations, the ripple effect will have implications for our national security and military families.”
The White House memo warned that if the US defaults and can no longer pay its obligations, it could “undermine our national security and international credibility.”
“The federal government pays the salaries of 2.1 million military members every year. If the US defaults, wage payments may be withheld or not paid,” the White House warned.
“Federal contractors that operate military bases and service military technologies and equipment may have delays in their payments, threatening their operations,” the White House continued.
“A default risk undermining the credibility of the United States abroad as both a global reserve currency and an economic and national security partner,” the White House said.
Meanwhile, Defense Secretary Lloyd Austin also warned that a US default would “undermine the economic strength on which our national security rests.”
Austin said in a statement, “It will also seriously harm our service members and their families because, as Secretary, I will have no authority or ability to ensure that our service members, civilians or contractors are protected.” Will be paid in full or on time.” on Wednesday, saying that “our service members and Defense Department citizens live up to their commitments.”
“My hope is that, as a nation, we will come together to ensure that we fulfill our obligations to them without delay or disruption,” Austin said.
The White House memo comes as the Senate expects the latest clash over debt limits. The Senate is expected to begin and end a procedural vote on Wednesday afternoon on an attempt to break the filibuster on a bill to suspend the debt limit until December 2022. That vote needs 60 years to end the debate and be passed final.
But Republicans are decrying any increase or suspension of the debt limit, and will not provide the additional ten votes needed to hit the 60 vote limit — if all 50 Democrats vote yes to end the debate.
Senate Majority Leader Chuck Schumer has not committed to a ‘Plan B’ on how Democrats will raise the debt limit without the help of the GOP. Senate Democrats could have used budget reconciliation to do this but Schumer rejected the idea at this point.
on Monday, managing committee Minority leader Mitch McConnell warned the president on Monday that Republicans would not help Democrats raise the debt limit and told him they should persuade members Congress To raise the loan limit along your party-to-party lines.
“Since mid-July, Republicans have explicitly stated that Democrats will need to raise the debt limit on their own. Throughout the year, your party has spent staggering, ‘transformative’ spending through unprecedented use of the party-line reconciliation process. chose to pursue it.” McConnell said. “I’ve relayed this reality to your Democratic lieutenants for two and a half months.”
McConnell said: “Your Democratic majority has not made its plan to avoid default … I respectfully submit that the time has come for Congress to engage directly with Democrats on this matter.”
President Biden on Monday described Senate Republicans as “reckless and dangerous.”
“Raising the loan limit comes down to paying off what we’re already owed,” Biden said, adding that it’s “nothing new.”
“The United States of America is a nation that pays its bills and always sets it up,” Biden said. “We never made a mistake.”
Bien said that “what we pay keeps us a great nation,” noting that raising the debt limit continues to provide Social Security for seniors, pay for the U.S. military, benefits for veterans, and more. Helps to keep.
“We are able to borrow because we always pay off our debt. That’s America. That’s who we are,” he said. “It’s called absolute trust in credit in the United States.”
Biden argued that raising the debt limit is “usually a bipartisan undertaking, and it should be.”
Treasury Secretary Janet Yellen has warned that the government will go into default for the first time in history if it fails to raise the debt limit before the October 18 deadline. Yellen said this would have disastrous consequences that could plunge the country into another recession and destabilize global markets.
The federal borrowing limit currently stands at $24.8 trillion.
The debt limit was suspended three different times during the Trump administration, According to Treasury Secretary Janet Yellen. The most recent suspension was passed in 2019 on a bipartisan basis – it expired in June 2021.
Failure to raise or suspend the loan limit could delay Social Security and child tax credit checks this October. Yellen said millions of American families, as well as nearly 50 million senior citizens, would be affected, who depend on the Child Tax Credit to meet their expenses. Federal employees may also experience pay delays.
Raising or suspending the debt limit allows the federal government to pay off obligations that have already been incurred. It does not authorize new spending.
Granthshala News’ Chad Pergram and Tyler Olson contributed to this report.