IB 

Union Calendar No. 29 

113TH CONGRESS 

1ST SESSION H. R. 807 

[Report No. 113–48] 

To require that the Government prioritize all obligations on the debt held 

by the public in the event that the debt limit is reached. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 25, 2013 

Mr. MCCLINTOCK (for himself, Mr. SCALISE, Mr. JORDAN, Mr. PRICE of 

Georgia, Mr. HENSARLING, Mr. GARRETT, Mr. COLE, Mr. YOUNG of Indiana, Mr. FRANKS of Arizona, Ms. FOXX, Mr. COLLINS of Georgia, Mr. 

MULVANEY, Mr. ROHRABACHER, Mr. LAMALFA, Mr. DUNCAN of South 

Carolina, Mr. BUCSHON, Mrs. BLACKBURN, Mr. CHAFFETZ, Mr. 

HUIZENGA of Michigan, Mr. LABRADOR, Mrs. LUMMIS, Mr. MILLER of 

Florida, Mr. BENTIVOLIO, and Mr. SCHWEIKERT) introduced the following bill; which was referred to the Committee on Ways and Means 

APRIL 30, 2013 

Additional sponsors: Mr. HALL, Mr. RIBBLE, Mr. CHABOT, Mr. CONAWAY, 

Mr. FLORES, Mrs. WAGNER, Mr. WILSON of South Carolina, Mr. 

POMPEO, Mr. WALBERG, Mr. BROOKS of Alabama, Mr. FLEISCHMANN, 

Mr. PITTS, Mr. POSEY, Mr. BARR, Mr. OLSON, Mrs. BLACK, Mr. GRIFFIN of Arkansas, Mr. BROUN of Georgia, Mr. YODER, Mr. STUTZMAN, 

Mr. LONG, Mr. PITTENGER, Mr. WESTMORELAND, Mr. LUETKEMEYER, 

Mr. DUFFY, Mr. HULTGREN, Mr. CRAMER, Mr. MULLIN, Mr. 

BRIDENSTINE, Mr. ROKITA, Mr. GOWDY, Mr. YOHO, Mr. SALMON, Mrs. 

BACHMANN, Mr. DESANTIS, Mr. GIBBS, Mr. MEADOWS, Mr. AMASH, 

Mrs. BROOKS of Indiana, Mr. FORBES, Mr. CALVERT, Mr. DESJARLAIS, 

Mr. MESSER, Mr. KING of Iowa, Mr. BENISHEK, Mr. HUDSON, Mr. 

HOLDING, Mr. ROE of Tennessee, Mr. RADEL, Mr. KLINE, Mr. 

WENSTRUP, Mr. CRAWFORD, Mrs. ELLMERS, Mr. COBLE, Mr. CAMPBELL, Mr. GOSAR, Mr. FLEMING, Mr. REED, Mr. BISHOP of Utah, Mr. 

WOODALL, Mr. GRAVES of Missouri, Mr. LANKFORD, Mrs. WALORSKI, 

Mr. NUNNELEE, Mr. LATTA, Mr. PERRY, Mr. ROYCE, Mr. THORNBERRY, 

Mr. ROTHFUS, Mr. GINGREY of Georgia, Mr. ROSKAM, Mr. BARTON, Mr. 

SESSIONS, Mr. LUCAS, Mr. JOHNSON of Ohio, Mr. COLLINS of New 

mstockstill on DSK4VPTVN1PROD with BILLS

2 

•HR 807 RH

York, Mr. NUGENT, Mr. MCKINLEY, Mr. HARRIS, Mr. COTTON, Mr. 

STEWART, Mr. NEUGEBAUER, and Mr. BURGESS

APRIL 30, 2013 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

A BILL 

To require that the Government prioritize all obligations 

on the debt held by the public in the event that the 

debt limit is reached. 

mstockstill on DSK4VPTVN1PROD with BILLS

3 

•HR 807 RH

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Full Faith and Credit 

5 Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that: 

8 (1) The Act of Congress establishing the Treas9 ury Department of 1789 states that the Secretary of 

10 the Treasury shall prepare plans for improving and 

11 managing the revenue of the United States Govern12 ment and for the support of the public credit. 

13 (2) Section 321 of title 31, United States Code, 

14 codifies the duty ‘‘to prepare plans for improving 

15 and managing receipts of the United States Govern16 ment and managing the public debt’’. 

17 (3) In carrying out the statutory responsibilities 

18 to ‘‘support of the public credit’’ and ‘‘managing the 

19 public debt’’ the Secretary shall take all necessary 

20 actions to ensure all obligations of the United States 

21 Government with regard to debt held by the public 

22 are fully discharged when due. 

23 (4) Such actions may include the forgoing of 

24 obligations not related to debt held by the public for 

25 a period of time deemed necessary by the Secretary 

mstockstill on DSK4VPTVN1PROD with BILLS

4 

•HR 807 RH

1 as authorized under section 324 of title 31, United 

2 States Code, which states that— 

3 ‘‘(a) The Secretary of the Treasury may— 

4 ‘‘(1) dispose of obligations— 

5 ‘‘(A) acquired by the Secretary for the 

6 United States Government; or 

7 ‘‘(B) delivered by an executive agency; and 

8 ‘‘(2) make arrangements to extend the maturity 

9 of those obligations. 

10 ‘‘(b) The Secretary may dispose or extend the matu11 rity of obligations under subsection (a) of this section in 

12 the way, in amounts, at prices (for cash, obligations, prop13 erty, or a combination of cash, obligations, or property), 

14 and on conditions the Secretary considers advisable and 

15 in the public interest.’’. 

16 SEC. 3. DUTY TO PROTECT THE FULL FAITH AND CREDIT 

17 OF THE UNITED STATES GOVERNMENT. 

18 (a) IN GENERAL.—In the event that the debt of the 

19 United States Government, as defined in section 3101 of 

20 title 31, United States Code, reaches the statutory limit, 

21 the authority of the Department of the Treasury provided 

22 in section 3123 of title 31, United States Code, to pay 

23 with legal tender the principal and interest on debt held 

24 by the public shall take priority over all other obligations 

25 incurred by the Government of the United States. 

mstockstill on DSK4VPTVN1PROD with BILLS

5 

•HR 807 RH

1 (b) SPECIAL RULE FOR INSUFFICIENCY OF

2 FUNDS.—Section 324 of title 31, United States Code, is 

3 amended by redesignating subsection (c) as subsection (e), 

4 and by inserting after subsection (b) the following: 

5 ‘‘(c) If the Secretary expects that there will be insuffi6 cient funds available to dispose of all obligations consisting 

7 of interest and principal of the debt held by the public 

8 on the next calendar day on which such obligations are 

9 due, then the Secretary shall extend the maturities of any 

10 other obligations under section (a) and refuse to issue 

11 warrants under section 321(a)(3) to the extent necessary 

12 to provide such funds as the Secretary deems prudent to 

13 dispose of obligations consisting of interest and principal 

14 of the debt held by the public for no less than the next 

15 30 calendar days. 

16 ‘‘(d) To the extent receipts exceed those required to 

17 meet the Secretary’s obligation under subsection (c), the 

18 Secretary shall prioritize the disposal of obligations under 

19 subsection (a) and issuance of warrants under section 

20 321(a)(3) in that order the Secretary considers advisable 

21 and in the public interest.’’. 

22 SECTION 1. SHORT TITLE. 

23 This Act may be cited as the ‘‘Full Faith and Credit 

24 Act’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

6 

•HR 807 RH

1 SEC. 2. PAYMENT OF PRINCIPAL AND INTEREST ON PUBLIC 

2 DEBT AND SOCIAL SECURITY TRUST FUNDS. 

3 (a) IN GENERAL.—In the event that the debt of the 

4 United States Government, as defined in section 3101 of 

5 title 31, United States Code, reaches the statutory limit, 

6 the Secretary of the Treasury shall, in addition to any other 

7 authority provided by law, issue obligations under chapter 

8 31 of title 31, United States Code, to pay with legal tender, 

9 and solely for the purpose of paying, the principal and in10 terest on obligations of the United States described in sub11 section (b) after the date of the enactment of this Act. 

12 (b) OBLIGATIONS DESCRIBED.—For purposes of this 

13 subsection, obligations described in this subsection are obli14 gations which are— 

15 (1) held by the public, or 

16 (2) held by the Old-Age and Survivors Insurance 

17 Trust Fund and Disability Insurance Trust Fund. 

18 (c) OBLIGATIONS EXEMPT FROM PUBLIC DEBT

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

20 be taken into account in applying the limitation in section 

21 3101(b) of title 31, United States Code, to the extent that 

22 such obligation would otherwise cause the limitation in sec23 tion 3101(b) of title 31, United States Code, to be exceeded. 

24 (d) REPORT ON CERTAIN ACTIONS.— 

25 (1) IN GENERAL.—If, after the date of the enact26 ment of this Act, the Secretary of the Treasury exermstockstill on DSK4VPTVN1PROD with BILLS

7 

•HR 807 RH

1 cises his authority under subsection (a), the Secretary 

2 shall thereafter submit a report each week providing 

3 an accounting relating to— 

4 (A) the principal on mature obligations and 

5 interest that is due or accrued of the United 

6 States, and 

7 (B) any obligations issued pursuant to sub8 section (a). 

9 (2) SUBMISSION.—The report required by para10 graph (1) shall be submitted to the Committee on 

11 Ways and Means of the House of Representatives and 

12 the Committee on Finance of the Senate. 

13 (3) TERMINATION.—The report requirement 

14 under paragraph (1) shall cease to apply after the 

15 date of the enactment of the first increase in the limi16 tation in section 3101(b), United States Code, after 

17 the date of the enactment of this Act. 

mstockstill on DSK4VPTVN1PROD with BILLS

Union Calendar No. 29 

113TH CONGRESS 

1ST SESSION H. R. 807 

[Report No. 113–48] 

A BILL 

To require that the Government prioritize all oblievent that the debt limit is reached. gations on the debt held by the public in the 

APRIL 30, 2013 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 

mstockstill on DSK4VPTVN1PROD with BILLS