ICYMI: U.S. Mayors Call for Bipartisan Debt Ceiling Increase as White House Report Details Catastrophic Economic Consequences of Default

Today, the White House warned that a failure to increase the debt limit could threaten the economic progress the nation has made in its recovery from the pandemic and badly hurt states and cities in the process. If Congress does not act to raise the debt limit, the U.S. could default on its obligations for its first time in its history – throwing us into recession and risking drastic cuts to states and cities in a range of areas, including disaster relief efforts, Medicaid and CHIP, infrastructure funding, education, public health and child nutrition.

The United State Conference of Mayors (USCM), today echoed those consequences of default in a new statement and joined the White House in calling for a bipartisan vote to address the debt ceiling – as happened three times in the previous Administration.

"Both parties in Washington have added to our debt, and both parties have an obligation to make sure the United States can continue to pay its bills," said USCM President Mayor Nan Whaley (Dayton, OH) in a statement. "Failure to increase the debt limit would send our economy into freefall and destroy the federal-local partnership that is so important to American cities."

Read the full release here:

Nation's Mayors Demand Congress Uphold Its Responsibility to Extend Federal Borrowing Authority

Washington, DC – In order to avoid a national financial crisis, the U.S. Conference of Mayors (USCM) is calling on Congress to extend the debt ceiling and avoid the kind of brinkmanship that could threaten the American economy. Demanding bipartisan and urgent action, USCM President Dayton (OH) Mayor Nan Whaley released the following statement:

"Both parties in Washington have added to our debt, and both parties have an obligation to make sure the United States can continue to pay its bills. This is one of the most basic responsibilities of Congress, and there is no good reason for lawmakers to create a crisis that undermines the full faith and credit of the United States. Failure to increase the debt limit would send our economy into freefall and destroy the federal-local partnership that is so important to American cities. Health care, food security, education and housing would all be in grave danger. A default would also trigger catastrophic ripple effects through credit markets and hamper the ability of city governments to finance our own services. This is no time to allow partisan politics to reverse the progress we've made. Congress must act now to secure our economic future and maintain our global standing."

Read more below:

AP: White House warns that debt limit showdown could hurt states

USA Today: White House says not raising debt limit halt 'billions of dollars' for state, federal programs

CNN: White House warns states of potentially dire effects if government defaults

Reuters: White House warns hitting debt limit could cause recession

Hill: White House warns GOP of serious consequences on debt ceiling

Forbes: White House Warns U.S. Could Plunge Into Recession If It Hits Debt Ceiling Next Month