A group of state treasurers are joining together in warning leading members of Congress that dire consequences will follow if they don’t act soon to take back control of the federal purse.
The state officials said in a letter Wednesday to Speaker of the House Mike Johnson and Senate Majority Leader John Thune, that President Donald Trump’s erratic second-term approach to national fiscal policy puts their states and the nation writ large at risk of serious financial calamity and that Congress must respond.
“The stability of the American economy — and the credibility of our governance — is on the line,” they warned, adding that “it is not too late, but the moment is rapidly slipping away.”
The state financial chiefs, Bay State Treasurer Deb Goldberg among them, say it’s their duty to protect “the long-term economic well-being of the people, communities, and institutions we serve,” but they can only do that if members of Congress are willing to do their jobs in Washington.
“In the federal system our founders designed, the House and Senate were created to ensure national power remained grounded in local accountability. Congress was not meant to be passive, but an active and co-equal branch of government — one that ensures continuity, credibility, and long-term stewardship, especially when the executive branch falters,” they wrote.
“That responsibility is now being tested,” they continued.
According to the state treasurers, the current financial landscape is “volatile” and it’s not a temporary glitch or readjustment, but a sign of things to come. It’s a “structural shift” in how global trade partners and domestic interests “perceive the reliability of the U.S. economy,” and those perceptions don’t cause “hypothetical risks.”
“These are live consequences,” they wrote, citing the state of the stock market, the damage already done to the U.S. dollar, increased costs of borrowing, declining economic indicators, consumer confidence, a recent downgrade in the U.S. economic forecast maintained by the International monetary fund, and very public threats to the independence of the nation’s central bank.
At the same time, they say, “the branch of government with the constitutional power to address” the problem “is not acting.”
“The damage being done is unprecedented and more significantly makes no sense. The Constitution gives the House and Senate — not the White House — the power to regulate trade, levy tariffs, borrow money, and protect the value of the dollar. These are not ceremonial duties. They are core functions of governance. And right now, they are underutilized — causing grave risk,” they write.
In addition to Goldberg, signatories included Colorado State Treasurer David Young, Connecticut Treasurer Erick Russell, Delaware State Treasurer Colleen Davis, Illinois State Treasurer Michael Frerichs, Minnesota State Auditor Julie Blaha, New Mexico State Treasurer Laura Montoya, Oregon State Treasurer Elizabeth Steiner, Rhode Island General Treasurer James Diossa, Vermont State Treasurer Mike Pieciak, Washington State Treasurer Mike Pellicciotti.
They are calling on Congress to “reassert control” and claw back its constitutionally provided authority over government spending and trade policy while at the same time moving to protect the independence of the Federal Reserve, restore “discipline to our national economic strategy,” and send the world’s markets a sure signal that the United States is still governed with “seriousness and stability.”
The State Treasurers close by reminding members of Congress that we’re not just dealing with another news cycle, but that history will note their actions in this moment.
“People throughout the country are watching as their financial pain becomes increasingly real. We are here to help, but we need Congress to take profound and definitive first steps,” they wrote.