Today, Nevada State Treasurer Zach Conine signed onto a letter to U.S. Speaker Kevin McCarthy, urging the House of Representatives to increase the federal debt limit immediately to avoid disastrous economic consequences for Nevada’s economy.
Treasurer Conine was joined by 12 other State Treasurers and the Comptroller for New York City in sending this letter, highlighting exactly what could happen to States across the country if the U.S. fails to act.
Last week, the U.S. officially reached its borrowing cap, and the U.S. Treasury Department is now taking extraordinary measures to try and stay within the debt limit as long as possible.
“Failure for Congress to come together and pass a bipartisan agreement on extending the debt limit, would have disastrous consequences on financial markets and local economies, hurting working class people the hardest,” said Treasurer Conine. “I hope that Congressional leaders can work collaboratively to avoid serious negative consequences for Nevadans.”
If the U.S. defaults on its existing debt obligations, Nevada could suffer significantly through decreased federal revenues available for public education, priority infrastructure projects, law enforcement, and emergency fire management.
Interest rates would likely skyrocket across the country, increasing the costs of borrowing for Nevada small business owners, homeowners, and thousands of families who are living paycheck-to-paycheck.
The Nevada Treasury says it is working with the State’s congressional delegation to quantify the effect that not increasing the debt limit would have on Nevada’s budget and the economy.
A full copy of the letter can be seen here:
