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November 30, 2020 the Honorable Nancy Pelosi the Honorable Steny November 30, 2020 The Honorable Nancy Pelosi The Honorable Steny H. Hoyer Speaker Majority Leader U.S. House of Representatives U.S. House of Representatives The Honorable James P. McGovern The Honorable John A. Yarmuth Chairman Chairman House Committee on Rules House Committee on the Budget Dear Speaker Pelosi, Leader Hoyer, Chairman McGovern, and Chairman Yarmuth: As you prepare the rules package for the 117th Congress, we respectfully request that you retain the Pay- As-You-Go (PAYGO) rule in effect for the current 116th Congress, which is well-established and has proven workable. The concept of PAYGO is simple: Congress should pay for things. Specifically, the rule promotes fiscal discipline and good government by prohibiting House consideration of direct spending or revenue legislation projected to increase the deficit. Currently, total federal debt exceeds $27 trillion. Debt held by the public has surpassed $21 trillion, which is over 100 percent of gross domestic product. Interest rates may be low today, but interest on our debt is projected to be the fastest growing part of the federal budget, crowding out key investments in future generations. Although much of the spending enacted this Congress has been justified by the need to swiftly address the COVID-19 crisis, we must recognize that our fiscal path is unsustainable. Against this backdrop, it would be irresponsible to eliminate or weaken PAYGO. The PAYGO rule operates as a constraint on the House, but a reasonable one. The House can waive the rule when it determines that it is necessary. For example, the House has passed numerous bills to address the health and economic effects of COVID-19, and in each case the PAYGO rule was appropriately waived. The PAYGO rule strikes the proper balance between promoting fiscal discipline and allowing for legislative flexibility in specific instances, such as a national emergency. There is no reason to upset this careful equilibrium. House Republicans talk a good game about fiscal discipline, but they rarely walk the walk when in power— as best evidenced by passage of the partisan and budget-busting tax law in 2017, which every member of the Blue Dog Coalition opposed. Meanwhile, when House Democrats are in control, we have proven time and again that we can make significant policy progress while abiding by PAYGO. For example, the Affordable Care Act was fully paid for, abiding by the PAYGO rule in effect during the 111th Congress. Keeping PAYGO in place, and consistently adhering to that rule, will demonstrate to the American people that House Democrats will uphold our promise to responsibly govern. The vast majority of Americans understand that excessive deficits and debt can hurt our economy, undermine our national security, and threaten our children and grandchildren’s future. Therefore, it is the Blue Dog Coalition’s position that the House should retain the PAYGO rule. Sincerely, REP. STEPHANIE MURPHY (FL-07) REP. TOM O’HALLERAN (AZ-01) Co-Chair for Administration Co-Chair for Policy Blue Dog Coalition Blue Dog Coalition REP. LOU CORREA (CA-46) REP. ANTHONY BRINDISI (NY-22) Co-Chair for Communications Co-Chair for Whip Blue Dog Coalition Blue Dog Coalition REP. KURT SCHRADER (OR-05) REP. SANFORD BISHOP (GA-02) Co-Chair Member Blue Dog Coalition Blue Dog Coalition REP. JIM COSTA (CA-16) REP. JARED GOLDEN (ME-02) Member Member Blue Dog Coalition Blue Dog Coalition REP. CHARLIE CRIST (FL-13) REP. ED CASE (HI-01) Member Member Blue Dog Coalition Blue Dog Coalition REP. VICENTE GONZALEZ (TX-15) REP. HENRY CUELLAR (TX-28) Member Member Blue Dog Coalition Blue Dog Coalition REP. JIM COOPER (TN-05) REP. BRAD SCHNEIDER (IL-10) Member Member Blue Dog Coalition Blue Dog Coalition .
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