As you know, after several months of negotiations, the House and the Senate passed a deal last week to raise the debt limit. Just when you thought the debt limit debate was over, it turns out it is really just getting started. Over the weekend, the credit rating agency Standard and Poor’s downgraded the United States’ long-term credit rating from AAA to AA+. One reason cited by S&P for the downgrade is that the debt limit plan agreed to by Congress and the Administration “falls short.” I voted no for essentially the same reason. This downgrade is another consequence of our nation’s debt problem.
The final version of the Budget Control Act signed into law by President Obama requires both houses of Congress to vote on a Balanced Budget Amendment by the end of the year, provides a mechanism to potentially raise the debt limit up to $2.4 trillion, enforces spending caps, and establishes a Joint Select Committee of Congress to develop legislation to further tackle our nation’s debt problem. While I thought we should be looking at more significant spending cuts and a requirement for a balanced budget, and accordingly did not support this final plan, it is a start that has changed the conversation in Washington on the debt. It’s no longer whether we should cut spending. Now, it is how do we start making the necessary cuts.
As the debt debate moves forward, it will be important to monitor the work of the Joint Select Committee created by this deal. The committee will be made up of 12 members of the House and the Senate – six Republicans and six Democrats. Their job is to come up with a plan that has a goal of reducing the budget deficit by at least $1.5 trillion over the next 10 years. The committee must vote on their plan by November 23 and report legislation to Congress by December 2. The full House and Senate must vote on this legislation by December 23. I will be paying close attention to the work of this committee and the deficit reduction plan they develop and offering suggestions to them for ways we can reduce government spending. If we want strong markets, increased job creation, and a promising future for America, we must continue the spending and debt conversation.
– Congressman Morgan Griffith
