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Dozens of state financial officials warn new Congress of national security implications of ignoring US debt
By Charles Creitz
Published November 18, 2024
EXCLUSIVE: More than three dozen state financial officers will send a letter to House Speaker Mike Johnson calling for action to assuage their "grave concerns" about the national debt.
The consortium of treasurers, controllers and auditors will tell Johnson, R-La., they agree with Arizona Republican Andy Biggs’ resolution declaring the national debt a "threat to national security."
"We have grave concerns about the national debt. We concur with [legislation from Sen. Mike Braun, R-Ind., and Biggs, R-Ariz.]…"
"It gives us great pause that we are speaking of our nation, which serves as the beacon of freedom and opportunity for the world," they wrote.
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"Control [the] debt to protect the states and American global leadership," read the subject line, as the state officials went on to call for the passage of a long-term congressional plan to restore U.S. solvency.
The national debt – which measures what the U.S. owes its creditors – rose to $35,965,533,024,604.05 as of Nov. 14, according to the Treasury Department. That is up about $15.2 billion from the figure reported the previous day.
The nation’s first Treasury secretary, Alexander Hamilton, wrote in 1790 that the U.S. debt "was the price of liberty [and] the faith of America has been repeatedly pledged for it."
"To justify and preserve their confidence and promote the increasing respectability of the American name… these are great and invaluable ends to be secured by a proper and adequate provision… for the support of public credit."
The U.S. budget was last balanced in the years between 1998 and 2001 during the Bill Clinton and George W. Bush administrations. Prior to that, former President Lyndon Johnson oversaw a balanced budget in 1968.
"Balancing the budget and reducing spending are among the most difficult, yet essential, actions you could take," the state financial officers wrote to Johnson:
"That is why we have come together to support you in making these critical decisions."
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The National Debt Clock (Reuters)
They warned that the cost of servicing the debt in 2024 exceeded both $1 trillion and thereby the annual cost of Medicare payouts.
"America's financial stability, the dollar will be replaced as the reserve currency, and we will lose our nation's status as the global leader. To prevent this looming day of reckoning, which could easily occur within our and our children’s lifetimes, requires a commitment to begin addressing this situation on day one."
The officials expressed that a new president and a new Congress could mean a reset on fiscal policy and potentially produce a "National Financial Restoration Plan" before July 4, 2026, when the U.S. turns 250 years old.
One avenue they suggested, which has been floated by President-elect Trump as well, is to slash regulations and tap into "vast national resources" and put them on the market.
Alaska’s chief financial officer, Adam Crum, was one of the signatories of the letter, and the man who appointed him – Gov. Mike Dunleavy – previously told Fox News Digital the state remains ready to work with any administration willing to utilize the Last Frontier’s oil and gas resources in that way.
Biden, he said, "is searching for oil anywhere except at home."
Other signatories have recently made news with their own belt-tightening endeavors, including Pennsylvania Treasurer Stacy Garrity – who recently announced a $737 million had been added to the state’s "Rainy Day Fund."
Garrity said when she took office in 2021 that it was one of the "worst reserve funds" of any state, and praised both the Republican legislature and Democratic Gov. Josh Shapiro for their aid.
Iowa Treasurer Roby Smith added that the Hawkeye State too has adopted strong budgeting practices and he would like to see the same approach taken federally.
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Donald Trump Jr., Eric Trump, Speaker Mike Johnson and Vivek Ramaswamy during the UFC 309 event at Madison Square Garden on Nov. 16, 2024, in New York City. (Jeff Bottari/Zuffa LLC)
"Congress should look to Iowa as an example of the benefits of keeping a balanced budget and limiting spending, and should place a strong emphasis on applying these same principles at the federal level," he said.
"Our hard-won independence depends on it," added Indiana Comptroller Elise Nieshalla.
Arizona State Treasurer Kimberly Yee said her "don’t spend more than you make" mantra needs to be heeded by Washington.
https://www.foxnews.com/politics/dozens-state-financial-officials-warn-new-congress-national-security-implications-ignoring-us-debt