It was a close call but majority Republicans in the House last week passed a bill that increases the debt limit but ties it to deep spending cuts that Democrats like Sen. Bob Menendez (D-NJ) are calling Draconian, at best.
President Joe Biden and Menendez say the debt ceiling should not be tied to budget cuts.
“Democrats will say what they think should be done and I assume at some point there will be a compromise in order to get a budget done, but not on the debt of the nation,” said Menendez at Helping Hands Learning Academy in Rahway on Monday, where he, advocates and residents discussed the impact the Republicans’ Default on America bill could have on New Jersey families.
Menendez said a default would impact everything from unemployment to interest rates to the U.S. dollar’s standing as the world’s currency of reserve.
Senate Democrats have scheduled hearings on the Republican bill.
