SE North Carolina News

WASHINGTON, DC – Congressman David Rouzer (NC-07) released the following statement ahead of voting on the Fiscal Responsibility Act:

“The calculation here is quite simple.  There are three options: pass the Fiscal Responsibility Act, pass a clean debt ceiling bill without any reforms, or default on our payment obligations.  The Fiscal Responsibility Act includes the largest spending cut to ever come before the full House.  It includes significant reforms to speed up construction of energy and infrastructure projects to boost American energy production.  It includes work requirements for able bodied adults without dependents who are on welfare.  These and the other common sense reforms included in the package will help improve the growth of the economy necessary to generate more revenue for the Treasury and bend the spending curve back to Fiscal Year 2022 levels — all of which puts us on the path to reduce the national debt.” 

Background:

On May 26, 2023, U.S. Treasury Secretary Janet Yellen notified Congress the Treasury Department (Treasury) will have insufficient resources to meet all the government’s financial obligations after June 5, 2023.

If lawmakers did not act, economic risks would skyrocket well before Treasury’s account balance reaches zero.  Meeting all obligations would become increasingly challenging as reserves dwindle.  Fulfilling all payment obligations for critical programs like Social Security, Medicare, Medicaid, defense, and military active duty pay could quickly become impossible.

American families would bear the economic brunt of this outcome, our global leadership position would be threatened, and our adversaries would question our strength of leadership and national security capabilities.

The Fiscal Responsibility Act:

•    Reduces the deficit by $2.1 trillion over 6 years, while fully funding defense and veterans’ programs, Social Security, and Medicare.

•    Claws back nearly $28 billion of unobligated, unspent COVID funds.

•    Enacts consequential, money-saving reforms to the Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) to get Americans back to work and grow the economy.

•    Cuts red tape and streamlines important infrastructure and energy projects with the first significant reform to the National Environmental Policy Act (NEPA) since 1982.

•    Provides $886 billion for our national defense, ensuring our men and women in uniform can maintain the readiness necessary for our national security.

•    Includes an automatic 1% cut to spending on January 1st if Congress doesn't pass all 12 appropriations bills by the end of the year.

Original source can be found here.