Amending the Education Sciences Reform Act of 2002

Floor Speech

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Ms. SNOWE. Mr. President, I rise in support of the motion to concur in the House amendment to S. 365, the legislative vehicle for the debt limit increase. Given the $14.3 trillion national debt, the $1.6 trillion deficit for the current fiscal year, and the unrestrained and skyrocketing growth of Government programs and services, this vote commences the debate that will lead our Government to reevaluate priorities and examine its spending with a critical eye.

Today's vote was critical to maintaining our country's financial credibility, and it was the first step in what will be many to rein in the U.S. Government's out-of-control spending. This bill reduces current spending, caps future spending, and controls previously unrestrained Government budgets over the next decade, while also protecting critical Social Security benefits.

Just weeks ago, the United States was warned it would lose its stellar AAA credit rating on two grounds: if Washington did nothing to address its debt and deficit spending, and if Congress failed to raise the debt ceiling, thus triggering a default. This vote addresses both issues by, for the first time in history, requiring spending reductions equal or greater to the amount the debt ceiling is raised. That is indeed a first, positive step toward making our Government accountable to its people.

This action was critically important to every family in America. A default would have resulted in a downgrade in our Nation's credit rating and triggered higher interest rates for borrowing at all levels, from the Federal Government, to states and municipalities, to every American who has a mortgage, a car loan, a student loan, or a credit card. Failure to pass this bill would have put retirement funds at risk at a time when seniors are looking for financial stability and counting on predictability in their retirement income.

While no one can predict how the ratings agencies will react to this legislation, it at least signals that our country is serious about getting its financial situation in order. In addition, it requires Congress to vote on a balanced budget amendment to the Constitution, which is a commonsense reform I have championed since I came to Congress. Mandating the Federal Government to do what nearly every State legislature is already required to achieve sends a message to every American and the world that Washington finally gets it, and at last understands the consequences of failing to control spending. Let there be no mistake--we can no longer accept budgets that compromise our economic growth, living standards, or opportunities that have been a hallmark of America's greatness.

Though this agreement is historic, I have grave concerns about the supercommittee established by this legislation. Creating a 12-person Washington commission to do the job of 535 elected representatives is another indication of a broken political system in dire need of repair. I will work tirelessly to bring accountability, reason, and transparency to the decisions this supercommittee makes and presents to Congress for an up-or-down vote.

This legislation initially exempts Social Security, Medicaid, and veterans programs from spending cuts. After the initial cuts are implemented, I am deeply concerned that the supercommittee could seek savings from Medicare, Medicaid, and defense spending. The committee has to recommend solid recommendations that Congress must act upon in order to avoid automatic cuts designed to incentivize Congress to fulfill this responsibility. Indeed, if the committee's recommendations are not adopted by Congress, automatic cuts to Medicare providers and defense spending could go into effect while Medicaid would be exempt. For these reasons, I will be especially vigilant about the work of the supercommittee to ensure that its recommendations achieve an equitable outcome.

Moreover, this bill should have included a pro-growth strategy for our economy to address our cumbersome Tax Code, overly onerous and inefficient regulatory scheme, and a mountain of new health care costs. I have long advocated for a major overhaul of our Tax Code, regulatory reform, and a pro-jobs agenda. Indeed, throughout this year I have repeatedly called on our President and this Congress to focus with laser-like precision on jobs and the economy. Once again, I call on the President and the Congress to immediately turn to focus on concrete measures that will actually put Americans back to work.

Indisputably, debt and deficits are a dangerous combination at a time when we are experiencing an unprecedented period of long-term unemployment with more than 22 million Americans unemployed or underemployed, and another 2.2 million who want a job, but are so discouraged they stopped looking for work altogether. In the 29 months since President Obama took office, unemployment has dipped below 9 percent for only 5 months, and actually increased to 9.2 percent in June. Manufacturing grew at the slowest pace in 2 years in July. The housing downturn is worsening, with no plausible end to foreclosures in sight. Home prices in March fell to their lowest level since 2002. Consumers, confronted with higher gas and food prices, are spending less on discretionary items.

And yet at a moment when every dollar Government spends should be wisely dedicated to job creation to return us on the path to prosperity, we are forced to commit an astounding $200 billion per year just to service our debt. The cost of net interest alone will more than double in the next 10 years to reach nearly $1 trillion per year in 2021. In fact, the CBO's most recent long-term outlook states that by 2035 interest costs on our Nation's debt would reach 9 percent of GDP, more than the U.S. currently spends on Social Security or Medicare. And if interest rates were just 1 percentage point higher per year, over 10 years the deficit would balloon by $1.3 trillion from increased costs to pay interest on our debt alone.

It is abundantly clear that we can no longer afford to borrow money without a clear plan in place to rein in Federal spending and force the Government to live within its means. Today's legislation is the first step in that direction.

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