I 

116TH CONGRESS 

1ST SESSION H. R. 5083 

To provide that, in the event that the Secretary of the Treasury estimates 

that the debt ceiling will be reached, the Secretary is required to issue 

GDP-linked bonds to pay the principal and interest on the public debt 

and the President is authorized to request the rescission of certain 

unobligated balances and sell certain mortgage-related assets, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 14, 2019 

Mr. SCHWEIKERT (for himself, Mr. NORMAN, Mr. MEADOWS, and Mr. GAETZ) 

introduced the following bill; which was referred to the Committee on 

Ways and Means, and in addition to the Committees on Financial Services, the Budget, and Rules, for a period to be subsequently determined 

by the Speaker, in each case for consideration of such provisions as fall 

within the jurisdiction of the committee concerned 

A BILL 

To provide that, in the event that the Secretary of the 

Treasury estimates that the debt ceiling will be reached, 

the Secretary is required to issue GDP-linked bonds to 

pay the principal and interest on the public debt and 

the President is authorized to request the rescission of 

certain unobligated balances and sell certain mortgagerelated assets, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Debt Ceiling Alter3 native Act’’. 

4 SEC. 2. ESTIMATE THAT BORROWING WILL REACH THE 

5 STATUTORY DEBT LIMIT. 

6 If the Secretary of the Treasury makes an estimate 

7 of net marketable borrowing for a quarter that estimates 

8 that the debt of the United States, as defined in section 

9 3101 of title 31, United States Code, will reach the statu10 tory limit during such quarter, the Secretary shall imme11 diately notify Congress of such estimate, and the Sec12 retary of the Treasury shall issue bonds described under 

13 section 3 and the President may take the actions described 

14 under sections 4 and 5. 

15 SEC. 3. ISSUANCE OF GDP-LINKED BONDS TO PAY THE 

16 PRINCIPAL AND INTEREST ON THE PUBLIC 

17 DEBT. 

18 (a) IN GENERAL.—Upon the issuance of a notifica19 tion to Congress under section 2, the Secretary of the 

20 Treasury shall issue bonds— 

21 (1) with an interest rate linked to the nominal 

22 gross domestic product of the United States; and 

23 (2) the proceeds from which may only be used 

24 to pay the principal and interest on obligations of 

25 the United States held by the public or the Old-Age 


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1 and Survivors Insurance Trust Fund and Disability 

2 Insurance Trust Fund. 

3 (b) OBLIGATIONS EXEMPT FROM PUBLIC DEBT

4 LIMIT.—Obligations issued under subsection (a) shall not 

5 be taken into account in applying the limitation in section 

6 3101(b) of title 31, United States Code, to the extent that 

7 such obligation would otherwise cause the limitation in 

8 section 3101(b) of title 31, United States Code, to be ex9 ceeded. 

10 (c) REPORT ON CERTAIN ACTIONS.— 

11 (1) IN GENERAL.—If the Secretary of the 

12 Treasury issues bonds under subsection (a), the Sec13 retary shall thereafter submit a report each week, 

14 until all such bonds are redeemed, providing an ac15 counting relating to— 

16 (A) the principal on mature obligations 

17 and interest that is due or accrued of the 

18 United States; and 

19 (B) any bonds issued pursuant to sub20 section (a). 

21 (2) SUBMISSION.—The report required by para22 graph (1) shall be submitted to the Committee on 

23 Ways and Means of the House of Representatives 

24 and the Committee on Finance of the Senate. 


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1 SEC. 4. RESCISSION OF UNOBLIGATED BALANCES. 

2 (a) IDENTIFICATION OF UNOBLIGATED BALANCES.— 

3 Upon the issuance of a notification under section 2, the 

4 President may issue a message to Congress containing a 

5 list of budget authority proposed to be rescinded. Such 

6 list may only contain items related to unobligated balances 

7 of funds made available before the beginning of the fiscal 

8 year during which such notification is made. 

9 (b) EXPEDITED CONSIDERATION OF RESCISSIONS.— 

10 A message issued pursuant to subsection (a) shall be 

11 deemed a special message for purposes of the expedited 

12 procedures described under section 1017 of the Congres13 sional Budget and Impoundment Control Act of 1974 (2 

14 U.S.C. 688). 

15 SEC. 5. SALE OF MORTGAGE-RELATED ASSETS. 

16 Upon the issuance of a notification to Congress under 

17 section 2, the President may order the sale of the following 

18 assets, with the proceeds from such sales deposited in the 

19 Treasury: 

20 (1) On-balance sheet non-performing mortgages 

21 of the Federal National Mortgage Association. 

22 (2) Other mortgages owned or held by the Fed23 eral National Mortgage Association. 

24 (3) Real estate owned properties of the Federal 

25 National Mortgage Association. 


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1 (4) On-balance sheet non-performing mortgages 

2 of the Federal Home Loan Mortgage Corporation. 

3 (5) Other mortgages owned or held by the Fed4 eral Home Loan Mortgage Corporation. 

5 (6) Real estate owned properties of the Federal 

6 Home Loan Mortgage Corporation. 

7 (7) Mortgage-backed securities held by the 

8 Board of Governors of the Federal Reserve System 

9 or any Federal reserve bank. 

Æ 


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