Default would have devastating economic effects for local governments.
Washington, DC – Today, the National League of Cities CEO and Executive Director Clarence E. Anthony called for a bipartisan solution to the impending national debt limit on behalf of cities, towns and villages and their residents.
“We are coming down to the wire on preventing a default on the national debt, which would be devastating for local governments and their residents. While we commend the White House and Congressional leadership for coming to the table, there is no time to lose.
Short-term rates are already at significantly higher levels than in recent history. A default by the federal government would likely cause those rates to skyrocket temporarily, making it unfeasible for local governments to utilize short-term borrowing facilities.
In turn, cities, towns and villages would have to delay or cancel many projects, such as bridges and sewer system upgrades, until interest rates return to normal. This would impact infrastructure projects and the jobs they create particularly hard, disrupting local economies, municipal budgets and much-needed infrastructure improvements in communities across the country.”
For more information on what a default would mean for the nation’s cities, towns and villages, read our newest article: What Happens to Municipalities if the U.S. Defaults on National Debt?
The National League of Cities (NLC) is the voice of America’s cities, towns and villages, representing more than 200 million people across the country. NLC works to strengthen local leadership, influence federal policy and drive innovative solutions. Stay connected with NLC on Facebook, Twitter, LinkedIn and Instagram.