CASTRO ON HARMFUL CONSEQUESCES OF GOVERNMENT DEFAULT IN TEXAS

Washington, D.C. — Congressman Joaquin Castro today called on the House to reach a responsible solution to end the government shutdown and avoid a default citing the detrimental effects a default would have on Texans.

 

“Texans and Americans of all walks of life and generations stand to lose in big ways if our nation fails to pay the debts Congress has already incurred. The uncertainty created in the last couple of weeks should teach Congress a lesson that we shouldn’t have government by crisis,” said Rep. Joaquin Castro. “An open, functioning government is not something that should be horse-traded between the political parties. A working government is something that every member of Congress owes the American people. I remain hopeful that we will soon come to a bipartisan resolution to re-open the government and pay our nation’s debts.”

 

According to a report by the House Ways & Means Committee, Texans of all ages could be hit hard: 

• Disabled veterans may not receive their pensions. Nearly 300,000 disabled veterans in Texas would not receive their benefits on November 1.

• Higher mortgage costs. Over half a million new Texas  homeowners could see their mortgage payments increase by $36,000 over the life of their 30 year home loan

• Education becomes more costly. Over 500,000 Texas students could see loan payments increase as much as $2,000

• Lost retirement savings. Over 4 million Texas retirees could lose more than $35,000 from their retirement savings

• Social Security checks for Seniors halted. Over 3 million Texans would not receive their social security benefits 

 

For more details from the report on the possible impact of a default in Texas, click here.