Press Release

AFL-CIO: McCarthy’s Reckless Default Debt Ceiling Plan Is an Affront to Working People

Ahead of today’s vote in the U.S. House on the Limit, Save, Grow Act of 2023 proposed by Republican leaders, the AFL-CIO, America’s largest labor federation representing more than 12.5 million working people, strongly urged Congress to reject House Speaker Kevin McCarthy’s plan to careen our nation into default, which would tank the economy and put millions of workers at risk. 


In a letter to Congress, the federation calls out the bill for posing an imminent threat to the retirement security of hundreds of thousands of Americans, cutting life-supporting benefits and programs for veterans, seniors, children and low-income families. This misguided legislation will also harm our economy by slashing vital federal investments in clean energy and new technologies that will expand domestic manufacturing and put millions of people to work


Below is an excerpt: 

“By clawing back unused COVID-19 relief funds, the McCarthy plan would slash funding for veterans’ medical care, vaccines, personal protective equipment and public transit agencies. It also could jeopardize the unspent funds in the multiemployer pension rescue plan—the “Butch Lewis Act”—that was included in the American Rescue Plan Act. Destroying the retirement income security of more than 1 million hardworking Americans is an outrageous and unacceptable price for a debt deal. 

“The McCarthy plan also would dim hopes of transitioning to a cleaner energy economy and rebuilding our manufacturing base around clean energy jobs. The United States is in a position to become a dominant producer of high-tech goods—from wind turbines to solar to electric vehicles. Rescinding the Inflation Reduction Act’s clean energy tax credits would cede the clean energy future to China and raise taxes on our businesses that are trying to remain globally competitive while combating climate change. 

“The cuts in the McCarthy plan would fall disproportionately on the backs of federal workers and undermine the ability of government agencies to fulfill their mission to serve the American people.”

To view the full text of the letter, click here

Contact: Danielle Noel, 202-637-5018