Cost of MAGA Default: Sabotage the Department of Labor’s ability to protect millions of vulnerable workers

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 undermine workers across the nation by reducing the Department of Labor’s ability to address child exploitation and protect vulnerable employees. 

In March 2023, Department Of Labor Official Liz Watson Warned That A 22% Reduction In Funding “Would Have Very Real And Damaging Impacts On Our Families, Communities, Economy, And Competitiveness,” By Costing The Department Resources “To Protect Our Nation’s Most Vulnerable Workers” And “Hinde[r]” Efforts To Crack Down On Child Labor.

• March 2023: The Department Of Labor’s Assistant Secretary of Labor for Congressional and Intergovernmental Affairs Liz Watson Wrote A Letter To Rep. DeLauro (D-CT) Saying Returning Funding To FY 22 Levels “Would Have Very Real And Damaging Impacts On Our Families, Communities, Economy, And Competitiveness.” “Thank you for contacting the Department of Labor (DOL) with important questions about the impact of capping discretionary spending levels at the fiscal year (FY) 2022 enacted level on workers and their families. […] The potential cuts you describe in your letter would have very real and damaging impacts on our families, communities, economy, and competitiveness—undermining a broad range of critical services the American people rely on in their everyday lives.” [Letter from Assistant Secretary of Labor Liz Watson to Rep. Rosa DeLauro, 03/17/23]

• Watson Wrote Spending Cuts Would Hurt The Department’s “Ability To Protect Our Nation’s Most Vulnerable Workers” And “Hind[er] Our Efforts To Address Critical Issues Like Exploitative Child Labor.” “These drastic reductions in spending proposed by certain Congressional Republicans would be devastating—undermining our ability to protect our nation’s most vulnerable workers and hindering our efforts to address critical issues like exploitative child labor.” [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.