NE Valley Times

Congressman David Schweikert has introduced the Debt Explanation Before Taxwriters (DEBT) Act, which mandates that the Secretary of the Treasury appear before both the House Ways and Means Committee and the Senate Finance Committee. This requirement is set to take place before reaching the federal debt limit or employing extraordinary measures to prevent a U.S. default.

The United States hit its $36.1 trillion debt ceiling on January 21, 2025, leading the Treasury Department to implement temporary extraordinary measures to avert default, as reported by Reuters. Without congressional action to raise or suspend the debt limit before these measures are exhausted, there is a risk of default with potentially severe economic consequences.

Schweikert highlighted that if Congress continues current spending policies without intervention, in approximately nine budget years, 9.2 percent of the economy will be attributed to debt. This year alone could see borrowing reach about 7 percent of the entire economy.

Furthermore, should interest rates on U.S. sovereign debt rise to 5 percent, projections indicate that current expectations for $13 trillion - $14 trillion in debt over ten years could escalate to $22.7 trillion due to increased interest rates from December 2024 through spring 2025.

"The Secretary of Treasury has the extraordinary responsibility of preventing the U.S. from defaulting on its more than $36 trillion national debt," stated Congressman Schweikert. "Runaway spending and short-term bond policies over recent years have placed our country in a precarious position regarding long-term fiscal health." He expressed his desire not only to participate in discussions about national debt but also to influence them actively.

Schweikert emphasized that aligning Congress and the Executive branch is crucial for addressing what he considers "the greatest threat to American prosperity—the national debt." He anticipates working with the incoming administration towards fulfilling U.S. obligations while curbing unsustainable spending.

The DEBT Act outlines specific responsibilities for the Secretary of Treasury, including providing detailed explanations of extraordinary measures taken and their administrative costs, as well as any reversals or changes in funding federal government obligations.

Congressman Schweikert is currently serving his eighth term in Congress and holds several leadership positions within various committees and caucuses.