Fresno Leader

WASHINGTON – Congressman Jim Costa (CA-21) released the following statement after voting against the Default on America Act.

“House Republicans are threatening to blow up the economy, putting the financial security of millions of Americans at risk,” said Costa. “This bill slashes veterans’ benefits, cuts Americans critical food assistance and undermines our economic potential to compete and win in the 21st century. It is irresponsible to play games that would force a default on the bills that we already owe. We must prevent a default on our debt. Then we can find common agreement on how to manage our spending to meet the needs of American families.”

By refusing to act now to prevent a default, House Republicans are threatening an economic disaster that will devastate everyday Americans. In California’s 21st Congressional District, a default on our debt would:

• Kill 6,400 jobs as unemployment doubles.
• Threaten the retirement savings of 71,500 people near retirement.
• Put Medicare, Medicaid, and Veterans Affairs health benefits at risk for 422,000 people; and
• Jeopardize Social Security payments for 60,000 seniors in CA-21.

But the Default on America Act is no alternative. In California, the extreme House Republican scheme would:

• Put 2,673,000 people at risk of losing Medicaid coverage.
• Threaten access to food assistance for 136,000 people aged 50-55.
• Eliminate preschool and childcare for at least 35,200 children.
• Increase housing costs for at least 83,200 people; and
• Make college more expensive for at least 874,300 students.

House Democrats have already cut the deficit by historic levels and President Biden’s budget reduces deficits by $3 trillion more over the next 10 years while investing in America – lowering costs by making childcare, health care, and housing more affordable, supporting better schools, and strengthening our infrastructure.

Issues: Economy

Original source can be found here.