Santa Cruz Standard

Washington, DC – United States Representative Jimmy Panetta (CA-19) alongside members of the Problem Solvers Caucus unveiled a bipartisan debt ceiling framework comprised of steps to avoid defaulting on the national debt and advancing a sustainable budget.  Rep. Panetta, who helped author this framework, currently serves on the House Committee on Ways and Means and House Committee on the Budget.

Raising the debt ceiling is a routine, bipartisan obligation to cover previous spending.  Since 1993, Congress has raised the statutory limit 18 times and suspended it seven times.  The Treasury Department expects the country to reach the current debt limit in the early summer.  A failure to raise the debt limit would trigger a national default and result in catastrophic consequences to the global economy.

The plan would immediately suspend the debt ceiling through December 31 to allow the completion of the normal Congressional budgeting and appropriations cycles, create a special commission to review and recommend polices to address the nation’s long-term deficits and debt, and adopt interim deficit stabilization controls as well as other budgetary reforms.

“We just can’t afford to risk our nation’s credit worthiness and credibility by threatening to not raise our debt limit,” said Rep. Panetta.  “That’s why our bipartisan framework is an important foundation upon which we can find a path forward to immediately raise our nation’s debt ceiling while taking serious, bipartisan action to address our debt through the creation of a special commission and interim budgetary reforms. This is a commonsensical first step that Congress can take towards reducing our debt and deficit, while upholding our commitment to sustain necessary programs and ensure stable governance.” 

Without action a national default could result in disruptions to social security payments, military servicemember paychecks, public health funding, higher interest rates, and a downgrading of the nation’s credit worthiness.  A report from the Joint Economic Committee found that an average worker could lose an average of $20,000 from retirement savings and home buyers could pay an extra $55,000 over the course of a mortgage, if the debt ceiling is not raised.

The Problem Solvers Caucus is a bipartisan group in Congress comprised of 63 Members of Congress, equally divided between Democrats and Republicans.  The caucus is committed to finding common ground on many of the key issues facing the nation.

The full framework can be reviewed here.

Background guidance on the debt ceiling framework can be found here.

Original source can be found here