Reid, Baucus Introduce Bill to Avoid Default, Extend U.S. Borrowing Authority Through 2014

Washington, DC – Senate Majority Leader Harry Reid (D-Nev.) and Senate Finance Committee Chairman Max Baucus (D-Mont.) today introduced legislation that would avoid catastrophic default on the United States’ bills and suspend the debt limit until December 31, 2014.

“Republicans and Democrats may have our differences, but we should not hold the full faith and credit of the United States hostage while we resolve them,” said Majority Leader Reid.  “Let’s reopen the government, let’s pay our bills and we’ll negotiate. Sen. Baucus and I introduced this bill today, which will allow the United States to pay its debts, with no preconditions or strings attached. I hope we can get Republican cooperation to move this bill quickly. If not, the process could take us dangerously close to economic chaos.”

“No one knows what tragic mistakes playing games with the debt limit could trigger,” said Chairman Baucus.  “Defaulting and risking the U.S. dollar’s role as the world’s reserve currency and our place in the world economy is simply inexcusable.  We need to strengthen our economy, not destroy it.”

Background

Similar legislation was passed by the House by a vote of 285 to 144 and Senate by a vote of 64 to 34 in January 2013 to suspend the debt limit until May 19, 2013.  Since May, the U.S. Treasury has been using extraordinary measures to prevent the United States from defaulting on our bills.

The legislation, S 1569, is attached.

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