Democrats pan GOP’s ‘Pay China First legislation’ on debt prioritization

Democrats Are hitting House Republicans Their proposal was accepted. prioritize obligations to bondholders To avoid default, the party accused the other of prioritizing funding Chinese banks over financing key U.S. government services. This was in protest at the standoff regarding the debt ceiling.

On Thursday, the House Ways and Means Committee will meet to discuss a plan to prioritize federal spending in case Congress fails to act. resolve the debt ceiling crisis The summer deadline is approaching. The Default Prevention Act is a back-up measure, which Republicans believe would prevent a default technically and not wreak havoc on our economy.

REPUBLICANS LOOK TO ADVANCE BILL TO FORESTALL DEFAULT AMID DEBT CEILING BATTLE

The proposal was criticized by Democrats, who argued that the outdated federal computer systems make it impossible to prioritize debt.

“Even if the ‘Pay China First’ strategy were possible, you can’t legislate away Republicans’ aversion to governing,” Rep. Richie Neal (D–MA), was the top Democrat of the panel and made a statement. “This legislation is a weak attempt to socialize an impossible solution while showing the American people who the Republicans are for by putting foreign bondholders before our military, our veterans, and given its tax season, the American people’s tax refunds.”

Democrats also accuse their GOP counterparts that they signal their readiness for default and are not willing to compromise on their demands for a debt ceiling increase.

A GOP-led bill splits federal payments in a tiered structure, indicating which groups would continue to receive payments even when Congress runs out. This top-tier also includes interest payments on country’s foreign debts, which include China.

The second-tier payment schedule o