Johnson Comments Following Senate Passage of Debt Limit Increase

Press Release

Johnson Comments Following Senate Passage of Debt Limit Increase

U.S. Senator Tim Johnson (D-SD) today commented following Senate passage of an increase in the national debt limit. The increase passed earlier today by a vote of 60-39.

Over the last decade, two wars, tax cuts for the wealthiest Americans and a large and expensive prescription drug bill cancelled out earlier budget surpluses and doubled our national debt. Reluctantly, today, I supported an increase in the debt limit to prevent the country from defaulting on its debt. The United States cannot and will not default on its loans. Fortunately, this bill also included a return to Pay-Go so that we can stop this cycle of debt expansion and return the country to a sound fiscal policy.

When necessary, Congress has never failed to increase the debt limit, which has prevented the United States from defaulting on its debt. If the Senate failed to increase the debt limit, the following payments under the Treasury Department would come to a halt:

* Active duty military salaries
* Military retirement benefits
* Social Security benefits
* Veterans' compensation and pension payments
* Student loan payments
* Agriculture payments
* Civil Service retirement and disability benefits
* Railroad Retirement benefits
* Supplemental Security Income payments
* Individual and corporate tax refunds
* Defense vendor payments
* Unemployment benefit payments to states
* Medicaid payments to states
* Medicare payments to states
* Medicare payments to HMOs and prescription drug payments to insurance companies
* FDIC payments to resolve bank failures
* Federal civilian salaries
* Federal highway payments to states
* UD Public and Indian housing payments
* Interest on the national debt

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