Statement of Administration Policy: S. 1569 - Default Prevention Act of 2013

(Senate)

(Sen. Reid, D-NV, and Sen. Baucus, D-MT)

The Administration strongly supports passage of S. 1569, the Default Prevention Act of 2013. The legislation allows the United States Government to pay its bills through the end of calendar year 2014. Raising the debt limit allows the Treasury to pay for obligations that the Congress has already authorized—the legislation does not authorize any new spending. Once the Congress agrees to pay the Government’s bills and end this Government shutdown, the President looks forward to working with the Congress to create jobs and build on the progress the Nation has made to cut the deficit in half since 2009. But the Nation's economy cannot afford the threat of default and shutdown month after month just so a few Members of Congress can try to force passage of an extreme, failed legislative agenda. Funding the Government and paying its bills is the Congress's job. Without an increase in the debt limit, the United States will default on its bills and not have the resources necessary to honor all of its financial commitments, triggering an economic shutdown which could cause irrevocable damage to the Nation’s economy and financial markets. Swift passage of this bill would put an end to the reckless and irresponsible threat to the Nation's economy and the credit rating of the United States posed by the failure of the Congress to act. The President looks forward to signing this bill and providing certainty that the United States will pay all of its bills.