Feenstra: Democrats’ $1.9T Spending Bill Could Lead to Dangerous Debt Spiral

WASHINGTON -- Rep. Randy Feenstra (IA-04) released the following statement after final passage of the Democrats’ $1.9 trillion “COVID relief” bill:

“I remain strongly opposed to the Democrats’ reckless $1.9 trillion spending bill, which sends the U.S. down a dangerous path of uncontrollable debt. The Congressional Budget Office (CBO) recently announced the federal deficit has already exceeded $1 trillion in the first five months of fiscal year 2021. With nearly $1 trillion in previously allocated COVID relief funds still unspent, and with spending for the year already up 25 percent over last year, it’s clear any additional relief should be targeted, temporary, and tied to COVID.

“But this partisan bill is none of those things -- in fact, only nine percent of this bill, or about $160 billion, will be spent on public health measures like funding for additional testing, contact tracing, or vaccine programs. 

“While we are currently enjoying low interest rates, out-of-control spending means inflation is a real economic threat. Inflation would lead to interest rate hikes, payments on our $28 trillion in national debt would skyrocket, and the U.S. would enter a potentially catastrophic debt spiral. 

“I remain committed to spending taxpayer money wisely to secure a bright future for our children and grandchildren. Sadly, this bill does not rescue our country; it puts us and future generations at risk by driving us further into debt,” Rep. Feenstra said.

Feenstra also spoke during debate on the bill, expressing concerns that the Democrats’ out-of-control spending could lead to a dangerous debt spiral. Click here to watch his floor speech. Below are the full text of his remarks as prepared for delivery:

I rise in opposition to this reckless spending bill.

On Monday, the Congressional Budget Office announced the federal deficit has already exceeded $1 trillion in the first five months of fiscal year 2021.

Spending this year is already up 25 percent, and this massive bill paves the way for our national deficit to increase by another $1.9 trillion.

We're currently enjoying low interest rates, but out-of-control spending will lead to inflation.

Consumers are already bracing for inflation, expecting the cost of goods and services to rise by three percent.

Inflation leads to interest rate hikes -- for example, in the 1980s, the Federal Reserve raised interest rates to 20 percent to fight inflation.

Our debt is already at $28 trillion, so a higher interest rate would cause a catastrophic debt spiral.

This bill does not rescue our country, it puts us and future generations at risk.

I yield back.

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