Washington, D.C. - Senator Ron Johnson (WI) today made the following statement regarding reports that the Treasury Department is developing a plan to ensure the United States does not default on its debt obligations in the event the debt ceiling is not raised by August 2nd:

“As I indicated to President Obama in my May 25^th letter, it is irresponsible to assume that he’s going to get an increase in the debt ceiling.  It is irresponsible to be scaring the markets and the American people. And it’s irresponsible not to have some sort of backup plan, just in case.

“Now that I have read that the Treasury actually is trying to develop a contingency plan – a ‘Plan B’ – I’d say that’s a good thing.  They should have been doing it months ago. I hope they come up with a good one.

“There is absolutely no reason for Social Security recipients not to get a check; for our soldiers not to get paid; or for a debt payment to be missed. That would be the President’s choice - it would be the President's fault.  

“If there are cash-flow issues, I am willing to work with the Administration on a short-term line of credit, or other appropriate way to handle it. Businesses deal with that every day; it shouldn’t be a crisis.”

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