Legislation calling for transparency and reporting requirements when the federal government approaches statutory debt limits was introduced recently in the House.
U.S. Rep. Lloyd Smucker (R-PA) introduced H.R. 6895, the Debt Solution and Accountability Act, along with U.S. Rep. Tom Suozzi (D-NY). If passed, the bill would require the U.S. Department of the Treasury to submit a comprehensive report to Congress one month before a debt limit suspension expires, or whenever the national debt reaches 99.5 percent of the statutory debt limit. The report would include information on the state of the public debt, its main drivers and the administration’s short-, medium- and long-term plans to reduce debt .
“Both parties have added to the national debt over time—and the consequences are real. This straightforward requirement would hold Washington accountable to making fiscally responsible decisions concerning our debt with all available information at its disposal. The American people deserve to have confidence in their economic future, and this measure will secure that confidence in the full faith and credit of the United States,” Smucker said.
The law makers said the national debt crisis poses a serious threat to the future economic health of the country. The legislation is intended to strengthen fiscal accountability, improve Congressional oversight and ensure any debt limit actions are accompanied by plans to reduce federal debt.
“Affordability is the number one issue facing Americans today. Our massive national debt, the highest in history, is a major cost driver, keeping interest rates high so people can’t afford homes or cars,” Suozzi said. “Requiring the Treasury to communicate with Congress when our debt gets too high just makes sense. We need a whole of government approach to fiscal responsibility which, when practiced at the national level, lowers prices for everyone.”