Fitch Ratings: “repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management.”
Wednesday, August 9, 2023
MADISON, Wis. – Months after Congressional Republicans, including Reps. Bryan Steil, Derrick Van Orden, and Tom Tiffany risked our economic recovery by pushing the country to the brink of default, Fitch Ratings cited the weaponization of debt limit negotiations as a key factor in their decision to lower the credit rating of the United States.
In April, Wisconsin’s Republican congressmen all voted for the “Default on America Act,” a devastating plan that would have forced the United States to default for the first time in history unless massive cuts were made to programs including health care, food assistance, and even care for veterans. Fitch pointed to the politicization of debt limit negotiations as a key factor in their decision to downgrade the nation’s credit rating, writing, “the repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management.”
While President Biden successfully negotiated an agreement to avoid a fiscal disaster earlier this year, Congress will face a tight deadline to avoid a government shutdown when they reconvene next month. If Congressional Republicans once again refuse to negotiate and fail to pass next year’s federal budget by September 30th, the federal government could shut down, jeopardizing our economy as it continues to recover.
“Republicans in Congress have already done enough damage to our economy by forcing their extreme agenda at all costs, even pushing us to the brink of default,” said Opportunity Wisconsin Program Director Meghan Roh. “When Congress reconvenes next month, it’s critical that they pass a budget that funds the federal government without jeopardizing the programs and services that working families in Wisconsin depend on.”
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