Sunday, May 28, 2023 | 2 a.m.
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Like many Nevadans and Americans, I’m concerned about the effects of a possible default by the United States on the bills we have already incurred. The current debate before us in Congress on preventing default might not be on the top of the minds of everyone in Southern Nevada as they go about their day at work, school or enjoying their retirement. But everyone will feel the impacts, and it would hurt working families and business owners all over the Silver State.
House Speaker Kevin McCarthy, R-Calif., could quickly bring a vote to the floor that would allow us to raise the debt limit, our nation’s credit card, to pay our bills. That includes tax giveaways to the ultrawealthy people and corporations, many of whom often get away with paying no taxes. It also consists of the funds we used to keep Nevada’s economy going in the face of a pandemic, with $6.8 billion going to small businesses and saving jobs.
You may hear some Republicans say they passed a bill. The Default on America Act that I voted against holds the futures of working families, veterans, seniors and children hostage. Their proposal would mean $450 million less in federal money invested in Nevada. We would see cuts in our rail safety inspectors and the shutting down of two air traffic control towers, plus we would lose $25 million in highway and transit infrastructure investments.
For working families in the Las Vegas area, we would see devastating cuts to those who are already struggling to make ends meet. We would see 1,800 fewer preschool and child care slots. Thirteen thousand families would lose access to nutrition assistance in the Women, Infants, and Children (WIC) program, as would 11,000 older Americans who rely on Supplemental Nutrition Assistance Program (SNAP). And in a region already facing a housing crisis, 4,100 Nevadans would lose access to rental assistance, especially seniors and people with disabilities.
And our momentum in population growth, business opportunity and technology would be stifled. Nevada is the fifth fastest-growing state in the nation, and leads in electric vehicle battery manufacturing. As passed, the Default on America Act would undermine education and job training opportunities for Nevadans. For starters, 7,600 fewer Nevadans would be able to receive job training and employment services with cuts to workforce development funding.
The Silver State would lose $40 million in school funding, affecting students from low-income families trying to break free from the cycle of poverty. Our schools would lose over 700 teachers, affecting 250,000 students. College would become more expensive for 38,700 Nevada students, with hundreds losing access to Pell Grant support, which has allowed many, including myself, to obtain a college degree.
These are all the things that would happen with the Republicans’ ransom note on American services. The outlook is even more dire if nothing is passed and we default on our debts. The global, national and local impacts would cause irreparable harm to our economy. If Republicans cause a default, 30,000 Nevadans would lose their jobs. The average homeowner in the state would see their mortgage increase by $180,000. About 362,600 Nevadans would miss Social Security checks, resulting in a loss of $8.5 billion in spending power in our local economy, trickling down to small businesses and landlords, utilities and local tax revenues. And 390,700 Nevadans getting ready to retire would see upwards of $20,000 disappear from their 401(k)s.
All of these consequences can be averted by simply passing a clean bill, without riders or ransom notes, that ensures the United States can continue to pay our bills. President Joe Biden laid out a budget that addresses our debt, reducing our deficit by nearly $3 trillion over the next 10 years, protects and strengthens Medicare and Social Security, and ensures that the ultrarich and corporations pay what they owe in taxes. And we will work to pass that budget in the weeks ahead. But right now, we face a separate debate on paying what we already owe, and we cannot hold American families and their futures hostage to satisfy a small minority of people who what to inflict these devastating cuts.
I recognize that many Americans are concerned about federal spending and how it affects the costs of their everyday household and family. I’m willing to work with anyone from either party to prioritize our spending. I’m not willing to negotiate with extremists holding the American people, and their jobs and economic prosperity, hostage.
Steven Horsford represents Nevada’s 4th Congressional District in the U.S. House of Representatives.
