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House Democrats Vote for Default


Location: Washington, DC

The House Ways and Means Committee today amended and then passed the Full Faith & Credit Act which takes any worry of American default off the table. It also guarantees that Social Security benefits are fully paid if the President and Congress don't agree on a debt ceiling solution later this summer. The bill, which directs the Treasury to fully pay all U.S. bonds with interest when they come due, was approved out of committee on a party-line vote with every Democrat opposing.

"I'm disappointed that committee Democrats would vote for America defaulting on its debt, knowing how damaging that would be to our struggling economy and our dangerous deficits," remarked U.S. Congressman Kevin Brady (R-TX), a senior member of the committee. "This assurance that America will pay its debts shouldn't be the focus of partisan attacks. Neither should guaranteeing that our seniors get their full Social Security benefits."

"I hope my Democratic colleagues understand how dangerous flirting with default would be. I hope they reconsider and put partisanship aside to make sure America's obligation to honor our debts is never brought into question," concluded Brady.

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