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 good 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 projected to run out of money as early as June, 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: MAGA Default Would Interrupt Treasury Payments Could Hinder Medical Care Over 9 Million Veterans
- Treasury Secretary Janet Yellen Has Said That Her Department Does Not Have The Systems To Prioritize Debt Payments And That “‘Treasury Systems Have All Been Built To Pay Our Bills […] And Not To Prioritize One Form Of Spending Over Another.’” “Yellen said Friday that any failure to pay a government bill would constitute a debt default, insisting that her department doesn’t have the ‘systems’ to prioritize debt payments. […] ‘I will also say that Treasury systems have all been built to pay our bills, to pay all of our bills when they are due and on time and not to prioritize one form of spending over another.’” [Axios, 01/20/23]
- Over 9 Million Veterans Rely On Federal Physical And Mental Care. “A default threatens veterans’ programs as well, with over 9 million veterans relying on physical and mental care, in addition to other supports.” [The White House, 10/06/21]
- A Single Veteran With No Dependents And A 50% Disability Rating Relies On About $900 Per Month In Federal Benefits And Veterans With Higher Disability Ratings And Dependents Receive Even More. “For a single veteran with a 50 percent disability rating and no dependents, the average disability benefit is around $900 per month; veterans with families or with greater disability ratings receive more.” [The White House, 10/06/21]
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. 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 allowing the nation to pay its bills. The sooner they do, the less damage will be inflicted on Americans of all walks of life.