Washington, DC — The extreme MAGA House Majority is threatening to manufacture a catastrophic default crisis and economic collapse. To hold the economy hostage, the House passed a long list of hugely unpopular and extreme ransom demands that promise pain for millions of average Americans including veterans, seniors, students, children, workers, and the food insecure. They voted to ship 100,000 high paying manufacturing jobs overseas while going out of their way to protect wealthy tax cheats. The MAGA Majority’s proposed cuts are untenable, unworkable, and unserious, especially as they leave in place costly tax breaks for billionaires and big corporations. With the nation now projected to run out of money as early as June 1st, Accountable.US’ Cost Of MAGA Default’ project continues to underscore the catastrophic consequences of a MAGA default that grows closer by the day.
Today in focus: The MAGA Majority’s proposed cuts would chip away at the Department of Labor’s services and training for 750,000 job seekers, and eliminate 100,000 apprenticeships.
- A 22% Cut In Funding “Would Prevent About 750,000 Job Seekers From Accessing Services And Training.” “Workforce Development & Training: A 22 percent reduction would prevent about 750,000 job seekers from accessing services and training through ETA-funded programming. A return to FY 2022 enacted levels would result in about 125,000 fewer job seekers receiving services and training from the workforce development system.” [Letter from Assistant Secretary of Labor Liz Watson to Rep. Rosa DeLauro, 03/17/23]
- Proposed Funding Cuts Would Also Lower Apprenticeship, Leading To “100,000 Fewer Workers Being Employed Through Registered Apprenticeships.” “Registered Apprenticeship: A 22 percent reduction would lead to over 100,000 fewer workers being employed through Registered Apprenticeships. A return to FY 2022 enacted levels would lead to 76,000 fewer workers being employed through Registered Apprenticeships.”[Letter from Assistant Secretary of Labor Liz Watson to Rep. Rosa DeLauro, 03/17/23]
Spending reductions would also hurt the Department’s ability to recover back wages for workers which “make[s] a real difference for workers struggling to pay rent, buy food, pay for childcare, or cover gas or transportation costs to get to their jobs.”
- Spending Cuts Would Also Impact The Wage And Hour Division (WHD) To Recover Back Wages “For Nearly 153,000 Workers” “And Average Of $1,400 Per Worker. “The Wage and Hour Division (WHD) promotes compliance with basic labor laws and ensures that workers receive the protections they are entitled to under the law. Last year, WHD staff recovered more than $213 million in back wages for nearly 153,000 workers—an average of $1,400 per worker.” [Letter from Assistant Secretary of Labor Liz Watson to Rep. Rosa DeLauro, 03/17/23]
- Recovering Lost Wages “Make[s] A Real Difference For Workers Struggling To Pay Rent, Buy Food, Pay For Childcare Or Cover Gas Or Transportation Costs To Get To Their Jobs.” These recovered wages make a real difference for workers struggling to pay rent, buy food, pay for childcare, or cover gas or transportation costs to get to their jobs. Cuts to WHD funding levels would undermine the agency’s ability to ensure workers receive the wages that they’ve earned. WHD would be forced to reduce the number of compliance actions, investigations, and targeted inspections that result in recovery for thousands of workers.” [Letter from Assistant Secretary of Labor Liz Watson to Rep. Rosa DeLauro, 03/17/23]
BACKGROUND: Accountable.US’ ‘Cost of MAGA Default’ project puts a daily spotlight on specific harms the MAGA Majority’s default plan and brinkmanship will bring for Main Street and Wall Street alike – from tanking markets, frozen credit, lost jobs, disruptions to critical benefits like Social Security, and soaring interest rates on everything from car loans to mortgages. While the MAGA Majority claims they are holding the economy hostage over supposed debt ‘concerns,’ they insist on harmful cuts – crafted by the far-right House Freedom Caucus – aimed at average Americans while protecting and even expanding debt ballooning tax breaks for billionaires and big corporations that profiteer and ship U.S. jobs overseas. Not a deadbeat nation: The U.S. has never failed to pay its bills and Congress worked to prevent default 78 times since 1960, including 3 times during the Trump administration. The clock is ticking. The MAGA majority should stop playing dangerous political games with American lives and the economy and responsibly pass a clean bill that allows the nation to pay its bills. The sooner they do, the less damage will be inflicted on Americans of all walks of life.