Senate Republicans propose allowing states to redirect federal funds to debt reduction | New


Senate Republicans will introduce legislation on Thursday that allows state and local governments to reallocate federal government grants they receive to pay off growing national debt.

In particular, the bill would ensure that democratic-led blue states do not end up receiving federal funds that the red states rejected.

GOP Meaning. Cynthia Lummis of Wyoming and Rick Scott of Florida are set to introduce the Pay Down the Debt Act of 2021 to empower state and local leaders to take concrete action to reduce federal debt.

“We are on an unsustainable fiscal path, and right now states and communities are powerless to do anything,” Lummis told the Washington Examiner.

“Thanks to our bill, state and local leaders would be able to take the unused or unnecessary funds given to them by the federal government and reallocate those funds to pay off our $ 28 trillion national debt. we don’t start paying our debt now, our grandchildren will have to pay it later, ”she said.

Republicans are increasingly suspicious as Congress spent nearly $ 4 trillion on pandemic relief last year as the Biden administration prepares to spend billions more.

In April, Senate Republicans, led by Lummis, introduced legislation to create a new bipartite national commission reduce the deficit and balance the federal budget within 10 years.

Lummis and Scott cite President Joe Biden’s $ 1.9 trillion US bailout as an example of government spending that states partially withdrew. Many Republican states have now refused the additional unemployment benefits included in the law.

Another example occurred in 2011, when the Obama administration, led by then-Vice President Joe Biden, awarded $ 2 billion in grants for a high-speed train program in California after Scott, who was then governor of Florida, refused to take federal government money for his own state’s high-speed rail project.

The Republican governors of Ohio and Wisconsin also rejected federal grants to signal their fiscal discipline and score political points.

The high-speed train initiative was unsuccessful. Former President Barack Obama’s former transportation secretary Ray LaHood recently said it was a major failure.

Scott and other Republicans say they don’t want the wrong spending on the rail project to be repeated.

“Our nation is approaching $ 30 trillion in debt, and President Biden and the Democrats continue to spend US tax dollars with reckless abandon,” Scott told the Washington Examiner.

“Our bill promotes fiscal responsibility by allowing them to redirect the subsidies they receive from the federal government, such as the hundreds of billions in bailouts from the Democrats’ US bailout, toward cutting federal deficit spending.” , he added.

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