Congressman Henry Cuellar

Dear Friends and Neighbors in the 28th District,

In recent days, America has been handed a new challenge: long-term effects of a credit downgrade. Last week, a major credit rating agency, Standard and Poor’s (S&P) lowered the United States top-notch AAA credit rating to AA+ -- a first in U.S. history. I would like to take this opportunity to inform you on what this downgrade means for our country and your wallet.

After months of debt talks in Congress to reduce the deficit and avoid a default, a debt deal was reached to cut more than $2 trillion in spending over the next decade and raise the debt limit through the fall of 2012.

Credit rating agencies, including S&P, warned that failure to raise the debt ceiling would lead to a credit downgrade. As we now know, deal or no deal – the U.S. credit was downgraded.

According to S&P, there were numerous factors that contributed to this decision, including political uncertainty within the fiscal policy debate and negative outlooks of long-term debt stability. I remain extremely concerned that this U.S. downgrade not only has a dim global perspective for investors, but Americans will be negatively affected too.

You can compare our national credit downgrade to your personal credit score. Once your score gets downgraded, your ability to borrow decreases -- the same is true for the nation. Economists have estimated that this downgrade would raise the nation’s borrowing costs by $100 billion a year.

Now that the United States is considered a financially riskier country, we may have to pay higher interest rates. If the government pays more, then you will pay more. Everyone from homeowners to college students to those purchasing a new car may encounter higher loan rates. The credit downgrade equate to less money in your wallet, less consumer spending, and slower economic growth.

As your Representative in Congress, I feel compelled to share with you how we got here: because of a handful of extremists, calling themselves the Tea Party and House Republicans that hold the Majority of the House of Representatives.

House Republicans irresponsible handling of debt negotiations had a direct affect on the economic uncertainty the United States is experiencing today. It is no coincidence that soon after the Tea Party and ideological Republicans took over the House of Representatives, the U.S. is stripped of its top credit rating.

At a time of mounting debt, mostly accumulated from the past decade, the lack of leadership from the House Majority weakened our already struggling economy and caused the S&P downgrade. Putting ideological politics over sound governing is no way to run the government. 

The U.S. has become a mismanaged country that needs a readjustment to reinstate economic stability. The downgrade is urgent in nature, however, it does not change my priorities on fiscal responsibility. Reducing the deficit and ultimately creating a surplus in the United States federal budget has always been one of my priorities.

Our nation and lawmakers have new hurdles to jump since the downgrade. Now is the time to roll up our sleeves, balance the budget and put Americans back to work. That is why I sent a letter to House Speaker John Boehner and House Democratic Leader Nancy Pelosi urging the two to bring lawmakers back to Washington – we cannot afford to wait until September to start working on these vital issues.

 As always, it is my honor to represent you in Congress. If I can be of any assistance to you, please do not hesitate to contact our offices throughout the 28th District of Texas or in Washington, D.C.


Sincerely,

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Congressman Henry Cuellar



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Congressman Henry Cuellar is a member of the U.S. House Homeland Security and Agriculture Committees in the 112th Congress.  Accessibility to constituents, education, health care, economic development, and national security are his priorities. Congressman Cuellar is also a Senior Whip and member of the Blue Dog Coalition.