Statement on U.S. Reaching Debt Limit

Pelosi Statement on U.S. Reaching Debt Limit

Washington, D.C. - House Democratic Leader Nancy Pelosi issued the following statement today in response to the announcement this morning by Treasury Secretary John Snow that the statutory debt limit has been reached, and the Bush Administration can avoid default only by resorting to extraordinary accounting measures:

"Today's action is a shameful admission that the Bush Administration's economic policies have failed the American people. Under President Bush, our country has gone from a $5.6 trillion budget surplus to a record deficit of more than $3 trillion. Overall, as the Bush Administration admitted today, our debt is a staggering $7.38 trillion.

"Due in large part to the failed economic policies developed by the Administration and enacted into law by Congressional Republicans, the debt limit now will have to be raised for the third time in three years. The Republican leadership knew that the debt limit would be reached this month, but did not want an embarrassing vote on raising the debt ceiling until after next month's election,so Republicans are now resorting to extraordinary accounting measures to avoid that vote.

"It's time for the Bush Administration to wake up and admit reality. Unaffordable tax cuts for an elite few and billion-dollar tax breaks for companies that send American jobs overseas have not created jobs. The President's disastrous economic policies are just creating record deficits, higher interest rates, a drag on the economy, and a legacy of debt for our children. It is time for a change."