Hoyer Remarks Before House Budget Committee on the Debt Limit
Press Types
Press Release
For Immediate Release:
February 16, 2022
Contact Info:
Margaret Mulkerrin 202-225-3130
WASHINGTON, DC - This morning, House Majority Leader Steny H. Hoyer (MD) delivered remarks before the House Budget Committee on the growing consensus to deweaponize the debt limit. Below are his remarks as prepared for delivery:
“Thank you, Chairman Yarmuth and Ranking Member Smith for holding this hearing. I appreciate the opportunity to speak today on the need to abolish the debt limit as it exists today.
“The United States is one of only two major industrialized nations to have an arbitrary limit on the amount of debt its government can issue, but we are the only one for which the limit is even remotely within reach. Denmark had the good sense to set theirs so high as to be effectively repealed.
“I expect we’ll hear from our panelists today about the many ways that hitting the debt limit and allowing for a default on our nation’s obligations would cripple our economy and, likely, the global financial system. Those consequences are what make the debt limit so dangerous – and such a tempting hostage. The weaponization of the debt limit puts our country at risk. The serious threat of a potential default in 2011 caused S&P to downgrade America’s credit rating for the first time, based on its assessment that our political dysfunction could inadvertently trigger a financial catastrophe – rather than our economic or fiscal health.
“Sadly, Mr. Chairman, I share that assessment. I take some comfort, though, in knowing that I’m not alone in believing that we must act aggressively to protect the ‘full faith and credit of the United States.’Last September, Doug McMillon, Walmart C.E.O. and then-Chair of the Business Roundtable, wrote a letter with B.R.T. President Josh Bolton to Congress. It said: ‘Congress has the authority to lift the debt ceiling to safeguard the full faith and credit of the United States — and the responsibility to do so.’ They were right, of course. Safeguarding the full faith and credit of the United States is our responsibility. Given recent history, it is clear to me that the best way to do so is to eliminate the debt limit entirely or, short of that, significantly de-weaponize the near-constant threat of default posed by the debt limit in its current form.
“Chairman Yarmuth and Rep. Brendan Boyle just yesterday introduced a proposal to that end, building off a process first proposed by Senate Minority Leader McConnell back in 2011. They’re not the only ones with a proposal. Rep. Bill Foster has a bill of his own to repeal the debt limit, the Bipartisan Policy Center has worked with Members like Rep. Scott Peters and Jodey Arrington on a more complex option to replace it.
“Over the years, Democrats, Republicans, labor unions, business leaders, and economists have endorsed the notion that, at the end of the day, default should not be an option. That is why this hearing is so important and why I’m joining you today – to make clear that eliminating the threat of default would be an act of fiscal responsibility.
“I thank the Committee for holding a hearing on this issue, and I look forward to continuing to work with all of you to ensure that the United States always pays its bills on time. Thank you.”
“Thank you, Chairman Yarmuth and Ranking Member Smith for holding this hearing. I appreciate the opportunity to speak today on the need to abolish the debt limit as it exists today.
“The United States is one of only two major industrialized nations to have an arbitrary limit on the amount of debt its government can issue, but we are the only one for which the limit is even remotely within reach. Denmark had the good sense to set theirs so high as to be effectively repealed.
“I expect we’ll hear from our panelists today about the many ways that hitting the debt limit and allowing for a default on our nation’s obligations would cripple our economy and, likely, the global financial system. Those consequences are what make the debt limit so dangerous – and such a tempting hostage. The weaponization of the debt limit puts our country at risk. The serious threat of a potential default in 2011 caused S&P to downgrade America’s credit rating for the first time, based on its assessment that our political dysfunction could inadvertently trigger a financial catastrophe – rather than our economic or fiscal health.
“Sadly, Mr. Chairman, I share that assessment. I take some comfort, though, in knowing that I’m not alone in believing that we must act aggressively to protect the ‘full faith and credit of the United States.’Last September, Doug McMillon, Walmart C.E.O. and then-Chair of the Business Roundtable, wrote a letter with B.R.T. President Josh Bolton to Congress. It said: ‘Congress has the authority to lift the debt ceiling to safeguard the full faith and credit of the United States — and the responsibility to do so.’ They were right, of course. Safeguarding the full faith and credit of the United States is our responsibility. Given recent history, it is clear to me that the best way to do so is to eliminate the debt limit entirely or, short of that, significantly de-weaponize the near-constant threat of default posed by the debt limit in its current form.
“Chairman Yarmuth and Rep. Brendan Boyle just yesterday introduced a proposal to that end, building off a process first proposed by Senate Minority Leader McConnell back in 2011. They’re not the only ones with a proposal. Rep. Bill Foster has a bill of his own to repeal the debt limit, the Bipartisan Policy Center has worked with Members like Rep. Scott Peters and Jodey Arrington on a more complex option to replace it.
“Over the years, Democrats, Republicans, labor unions, business leaders, and economists have endorsed the notion that, at the end of the day, default should not be an option. That is why this hearing is so important and why I’m joining you today – to make clear that eliminating the threat of default would be an act of fiscal responsibility.
“I thank the Committee for holding a hearing on this issue, and I look forward to continuing to work with all of you to ensure that the United States always pays its bills on time. Thank you.”