U.S. Rep. Mark Pocan (WI-02), a member of the House Budget Committee, today voted against legislation that recklessly prepares the country for default instead of moving forward on a comprehensive national budget to spur economic growth. The Full Faith and Credit Act would require that if the country defaulted on our loans, the U.S. Treasury would have to pay bondholders in China and other foreign nations before fulfilling our obligations to our U.S. troops, Medicare patients, and small business owners.
"It is beyond irresponsible that we are even discussing defaulting on our country's loans," said Pocan. "This legislation only creates uncertainty for Wisconsin businesses and families by prioritizing payments to China before our own troops, students and small business owners, uncertainty that would only lead to another needless economic crisis. Congress needs to get serious with our fiscal policy and work on passing a comprehensive budget that grows the economy and strengthens the middle class."
If the Full Faith and Credit Act were to be signed into law and the country were to default on our debt, bondholders from China and other foreign nations would be paid first--putting payments to Americans at risk, including those to:
-1.4 million active duty troops and 780,000 activated reserves and National Guard
-3.4 million disabled veterans who served their country with honor
-1.3 million veterans who receive education or home purchasing assistance
-American small businesses that sell goods and services to the government
-Doctors and hospitals that treat the 50 million Medicare patients around the country