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U.S. Rep. Virginia Foxx: Passage of Full Faith and Credit Act Removes Threat of Default for Good

May 9, 2013. Congresswoman Virginia Foxx (R-NC) today issued the following statement upon the passage of the Full Faith & Credit Act(H.R. 807), which Foxx cosponsored, from the House of Representatives:

“Washington has a spending problem. Every time the federal government approaches its debt limit, like clockwork, big spending politicians – from the White House down – begin threatening ‘default’ unless the government is able to continue with its spending binge. Such gamesmanship is a disservice to everyone.

“The United States’ credit rating should not hang in the balance every time Washington has a debt limit debate. It is the President’s responsibility always to make good on our country’s debt payments, and today the House of Representatives established that for good by passing the Full Faith & Credit Act. It’s high time Congress moved beyond the scare tactic of ‘default.’”

The Full Faith & Credit Act requires that the U.S. Treasury always make debt payments to the public and Social Security Trust Fund, even when the federal government’s debt limit is reached. By taking the threat of default off the table, the United States’ credit rating will be protected, which is essential for economic growth, and seniors will have certainty regarding Social Security. The Congressional Budget Office affirms this legislation will not affect federal spending or revenues and contains no unfunded mandates.