To enforce the public debt limit and to protect the social security trust funds and other federal trust funds and accounts invested in public debt obligations.

Summary: Prohibits a U.S. officer or employee from:  (1) delaying the deposit or credit of any amount into any Federal fund, otherwise varying from normal procedures for making deposits or credits, or refraining from investments in public debt obligations of amounts in such fund if the purpose of such action or inaction is to not increase the amount of outstanding public debt obligations; and (2) disinvesting amounts in any such fund which are invested in public debt obligations if a purpose is to reduce the amount of outstanding public debt obligations.   Prescribes that during any period for which cash benefits or administrative expenses would not be payable from a covered benefits fund because of an inability to issue further public debt obligations due to the applicable public debt limit, such obligations held by a covered benefits fund will only be sold or redeemed for payment of:  (1) such benefits; or (2) administrative expenses and only if cash assets of such fund are not available from month to month for the purpose of making such payments. Requires the Secretary of the Treasury to notify each House of the Congress and the Comptroller General not less than three days before an expected sale or redemption.

SECTION 1. APPLICABILITY OF PUBLIC DEBT LIMIT TO FEDERAL TRUST FUNDS 
              AND OTHER FEDERAL ACCOUNTS.

    (a) Protection of Federal Funds.--Notwithstanding any other 
provision of law--
            (1) no officer or employee of the United States may--
                    (A) delay the deposit of any amount into (or delay 
                the credit of any amount to) any Federal fund or 
                otherwise vary from the normal terms, procedures, or 
                timing for making such deposits or credits, or
                    (B) refrain from the investment in public debt 
                obligations of amounts in any Federal fund,
        if a purpose of such action or inaction is to not increase the 
        amount of outstanding public debt obligations, and
            (2) no officer or employee of the United States may 
        disinvest amounts in any Federal fund which are invested in 
        public debt obligations if a purpose of the disinvestment is to 
        reduce the amount of outstanding public debt obligations.
    (b) Protection of Benefits and Expenditures for Administrative 
Expenses.--
            (1) In general.--Notwithstanding subsection (a), during any 
        period for which cash benefits or administrative expenses would 
        not otherwise be payable from a covered benefits fund by reason 
        of an inability to issue further public debt obligations 
        because of the applicable public debt limit, public debt 
        obligations held by such covered benefits fund shall be sold or 
        redeemed only for the purpose of making payment of such 
        benefits or administrative expenses and only to the extent cash 
        assets of the covered benefits fund are not available from 
        month to month for making payment of such benefits or 
        administrative expenses.
            (2) Issuance of corresponding debt.--For purposes of 
        undertaking the sale or redemption of public debt obligations 
        held by a covered benefits fund pursuant to paragraph (1), the 
        Secretary of the Treasury may issue corresponding public debt 
        obligations to the public, in order to obtain the cash 
        necessary for payment of benefits or administrative expenses 
        from such covered benefits fund, notwithstanding the public 
        debt limit.
            (3) Advance notice of sale or redemption.--Not less than 3 
        days prior to the date on which, by reason of the public debt 
        limit, the Secretary of the Treasury expects to undertake a 
        sale or redemption authorized under paragraph (1), the 
        Secretary of the Treasury shall report to each House of the 
        Congress and to the Comptroller General of the United States 
        regarding the expected sale or redemption. Upon receipt of such 
        report, the Comptroller General shall review the extent of 
        compliance with subsection (a) and paragraphs (1) and (2) of 
        this subsection and shall issue such findings and 
        recommendations to each House of the Congress as the 
        Comptroller General considers necessary and appropriate.
    (c) Public Debt Obligation.--For purposes of this section, the term 
``public debt obligation'' means any obligation subject to the public 
debt limit established under section 3101 of title 31, United States 
Code.
    (d) Federal Fund.--For purposes of this section, the term ``Federal 
fund'' means any Federal trust fund or Government account established 
pursuant to Federal law to which the Secretary of the Treasury has 
issued or is expressly authorized by law directly to issue obligations 
under chapter 31 of title 31, United States Code, in respect of public 
money, money otherwise required to be deposited in the Treasury, or 
amounts appropriated.
    (e) Covered Benefits Fund.--For purposes of subsection (b), the 
term ``covered benefits fund'' means any Federal fund from which cash 
benefits are payable by law in the form of retirement benefits, 
separation payments, life or disability insurance benefits, or 
dependent's or survivor's benefits, including (but not limited to) the 
following:
            (1) the Federal Old-Age and Survivors Insurance Trust Fund;
            (2) the Federal Disability Insurance Trust Fund;
            (3) the Civil Service Retirement and Disability Fund;
            (4) the Government Securities Investment Fund;
            (5) the Department of Defense Military Retirement Fund;
            (6) the Unemployment Trust Fund;
            (7) each of the railroad retirement funds and accounts;
            (8) the Department of Defense Education Benefits Fund and 
        the Post-Vietnam Era Veterans Education Fund; and
            (9) the Black Lung Disability Trust Fund.

SEC. 2. CONFORMING AMENDMENT.

        (a) In General.--Subsections (j), (k), and (l) of section 8348 
of title 5, United States Code, and subsections (g) and (h) of section 
8438 of such title are hereby repealed.
        (b) Retention of Authority To Restore Trust Funds With Respect 
to Actions Taken Before Date of Enactment.--
          (1) In general.--The repeals made by subsection (a) shall not 
        apply to the restoration requirements imposed on the Secretary 
        of the Treasury (or the Executive Director referred to in 
        section 8438(g)(5) of title 5, United States Code) with respect 
        to amounts attributable to actions taken under subsection 
        (j)(1) or (k) of section 8348, or section 8438(g)(1), of such 
        title before the date of the enactment of this Act.
          (2) Restoration requirements.--For purposes of paragraph (1), 
        the term ``restoration requirements'' means the requirements 
        imposed by--
                  (A) paragraphs (2), (3), and (4) of subsection (j), 
                and subsection (l)(1), of section 8348 of such title, 
                and
                  (B) paragraphs (2), (3), (4), and (5) of subsection 
                (g), and subsection (h)(1), of section 8438 of such 
                title.

            Passed the House of Representatives December 14, 1995.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.