San Diego Democrats Label GOP Debt Plan ‘Extortion’ and Warn of Financial Impression

Democratic members of the San Diego congressional delegation have assailed the Republican debt ceiling plan as “extortion” that may hurt households and veterans and “devastate” the economic system.

“It’s outrageous that Home Republicans are utilizing extortion to extract devastating cuts to federal applications,” mentioned Rep. Sara Jacobs, whose district is in central San Diego County. “Elevating the debt restrict ought to by no means be a political soccer — it’s about paying the money owed we owe, sustaining our full religion and credit score, and averting a catastrophic financial disaster.”

The Home invoice, which handed by a slender 217-215 margin on Wednesday, would enhance Washington’s borrowing authority by $1.5 trillion or till March 31, whichever comes first, elevating the specter of one other spherical of negotiations throughout the 2024 presidential marketing campaign.

The invoice would pare spending to 2022 ranges after which cap development at 1% a yr, repeal some tax incentives for renewable power and stiffen work necessities for some antipoverty applications.

Rep. Mike Levin mentioned Thursday the Republican plan would drive a 22% reduce in non-defense spending, with $30 billion much less for veterans providers

“I’m dismayed that my colleagues on the opposite aspect of the aisle are ready to drive a default and devastate our economic system if we don’t go together with it,” mentioned Levin, who represents north coastal San Diego County.

Jacobs mentioned a default on the nation’s debt would trigger greater than 7 million folks to lose their jobs and push the unemployment charge to eight%.

“I’ll do no matter it takes to make sure that we elevate a clear debt ceiling to guard our hard-earned advantages and our economic system,” she mentioned.

In the course of the Donald Trump administration, Republicans repeatedly voted to lift the ceiling with out circumstances.

Earlier this yr the San Diego delegation’s sole Republican, Rep. Darrell Issa who represents East County, blamed the Democrats for the deadlock.

“Democrats at the moment are sitting again and washing their arms of any financial culpability whereas blaming Republicans for the truth that the debt ceiling has been reached,” he mentioned. “None dare name this honest.”

Rep. Scott Peters, who represents coastal San Diego County, and different members of the centrist Drawback Solvers Caucus in Congress unveiled a bipartisan plan final week to keep away from defaulting on the nationwide debt this summer time.

Their plan requires suspending the debt ceiling by means of Dec. 31 to permit time to finish the traditional Congressional budgeting course of whereas making a particular fee to evaluate and suggest steps to stabilize long-term deficits and debt.

Elevating the debt restrict doesn’t enhance spending however permits the federal government to borrow to pay for current commitments made by Congress. The Republican Celebration has often used the specter of default as a bargaining chip in negotiations.

A prolonged 2011 standoff over the debt ceiling led to a first-ever downgrade of the federal authorities’s credit standing, which rattled markets and raised borrowing prices.