I

104TH CONGRESS

1ST SESSION H. R. 2621

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.

IN THE HOUSE OF REPRESENTATIVES

NOVEMBER 13, 1995

Mr. ARCHER introduced the following bill; which was referred to the

Committee on Ways and Means

A BILL

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.

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

3 SECTION 1. APPLICABILITY OF PUBLIC DEBT LIMIT TO

4 FEDERAL TRUST FUNDS AND OTHER FED5 ERAL ACCOUNTS.

6 (a) PROTECTION OF FEDERAL FUNDS.—Notwith7 standing any other provision of law—

8 (1) no officer or employee of the United States

9 may—
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1 (A) delay the deposit of any amount into

2 (or delay the credit of any amount to) any Fed3 eral fund or otherwise vary from the normal

4 terms, procedures, or timing for making such

5 deposits or credits, or

6 (B) refrain from the investment in public

7 debt obligations of amounts in any Federal

8 fund,

9 if a purpose of such action or inaction is to not in10 crease the amount of outstanding public debt obliga11 tions, and

12 (2) no officer or employee of the United States

13 may disinvest amounts in any Federal fund which

14 are invested in public debt obligations if a purpose

15 of the disinvestment is to reduce the amount of out16 standing public debt obligations.

17 (b) PROTECTION OF BENEFITS AND EXPENDITURES

18 FOR ADMINISTRATIVE EXPENSES.—

19 (1) IN GENERAL.—Notwithstanding subsection

20 (a), during any period for which cash benefits or ad21 ministrative expenses would not otherwise be payable

22 from a covered benefits fund by reason of an inabil23 ity to issue further public debt obligations because

24 of the applicable public debt limit, public debt obli25 gations held by such covered benefits fund shall be
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1 sold or redeemed only for the purpose of making

2 payment of such benefits or administrative expenses

3 and only to the extent cash assets of the covered

4 benefits fund are not available from month to month

5 for making payment of such benefits or administra6 tive expenses.

7 (2) ISSUANCE OF CORRESPONDING DEBT.—For

8 purposes of undertaking the sale or redemption of

9 public debt obligations held by a covered benefits

10 fund pursuant to paragraph (1), the Secretary of the

11 Treasury may issue corresponding public debt obli12 gations to the public, in order to obtain the cash

13 necessary for payment of benefits or administrative

14 expenses from such covered benefits fund, notwith15 standing the public debt limit.

16 (3) ADVANCE NOTICE OF SALE OR REDEMP17 TION.—Not less than 3 days prior to the date on

18 which, by reason of the public debt limit, the Sec19 retary of the Treasury expects to undertake a sale

20 or redemption authorized under paragraph (1), the

21 Secretary of the Treasury shall report to each House

22 of the Congress and to the Comptroller General of

23 the United States regarding the expected sale or re24 demption. Upon receipt of such report, the Comp25 troller General shall review the extent of compliance
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1 with subsection (a) and paragraphs (1) and (2) of

2 this subsection and shall issue such findings and rec3 ommendations to each House of the Congress as the

4 Comptroller General considers necessary and appro5 priate.

6 (c) PUBLIC DEBT OBLIGATION.—For purposes of

7 this section, the term ‘‘public debt obligation’’ means any

8 obligation subject to the public debt limit established

9 under section 3101 of title 31, United States Code.

10 (d) FEDERAL FUND.—For purposes of this section,

11 the term ‘‘Federal fund’’ means any Federal trust fund

12 or Government account established pursuant to Federal

13 law to which the Secretary of the Treasury has issued or

14 is expressly authorized by law directly to issue obligations

15 under chapter 31 of title 31, United States Code, in re16 spect of public money, money otherwise required to be de17 posited in the Treasury, or amounts appropriated.

18 (e) COVERED BENEFITS FUND.—For purposes of

19 subsection (b), the term ‘‘covered benefits fund’’ means

20 any Federal fund from which cash benefits are payable

21 by law in the form of retirement benefits, separation pay22 ments, life or disability insurance benefits, or dependent’s

23 or survivor’s benefits, including (but not limited to) the

24 following:
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1 (1) the Federal Old-Age and Survivors Insur2 ance Trust Fund;

3 (2) the Federal Disability Insurance Trust

4 Fund;

5 (3) the Civil Service Retirement and Disability

6 Fund;

7 (4) the Government Securities Investment

8 Fund;

9 (5) the Department of Defense Military Retire10 ment Fund;

11 (6) the Unemployment Trust Fund;

12 (7) each of the railroad retirement funds and

13 accounts;

14 (8) the Department of Defense Education Ben15 efits Fund and the Post-Vietnam Era Veterans Edu16 cation Fund; and

17 (9) the Black Lung Disability Trust Fund.

18 SEC. 2. CONFORMING AMENDMENTS.

19 Subsections (j), (k), and (l) of section 8348 of title

20 5, United States Code, and subsections (g) and (h) of sec21 tion 8438 of such title are hereby repealed.

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