Debt Ceiling Furloughs Are Unconstitutional, Union Will Argue Before Court Next Week

The lawsuit seeks to force the Biden administration to take unilateral action to avoid a default.

By ERIC KATZ , http://govexec.com

MAY 24, 2023

A federal judge will next week hear a case, brought by a federal employee union, on the constitutionality of the debt ceiling structure and the impact it could have on civil servants, potentially providing a last-minute opening to avoid a catastrophic default.

Judge Richard Stearns, from the U.S. District Court for the District of Massachusetts, on Tuesday scheduled arguments in a lawsuit brought by the National Association of Government Employees for May 31, the day before the government could default on its debts for the first time ever. The Biden administration must submit its written argument against NAGE’s position that a debt default is unconstitutional by May 30, placing it in a difficult position as it has so far declined to pursue unilateral action that would stave off a scenario of missed government payments.

The lawsuit is seeking an emergency injunction preventing the Biden administration from no longer borrowing money to pay the government’s debt, as is expected to occur under a default, and to prohibit any related layoffs or furloughs of federal employees. NAGE filed the complaint on behalf of its 75,000 federal employee members.

Congress sets funding priorities, the group said, and a default scenario that requires the president to pay down some obligations and not others undermines that constitutional structure. Complying with the debt ceiling is inherently unconstitutional, therefore, unless and until Congress sets a roadmap for the exact spending schedules during a default. Similarly, NAGE said, the president cannot simply cease making all payments during a default because the 14th Amendment to the Constitution prohibits the government from failing to pay its debts. The debt ceiling has placed President Biden in an “impossible situation,” NAGE argued, “without legislative permission or constitutional authority as to how to proceed.”

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https://www.govexec.com/management/2023/05/debt-ceiling-furloughs-are-unconstitutional-union-will-argue-court-next-week/386753/