I 

113TH CONGRESS 

1ST SESSION H. R. 807 

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 

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. 

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: 


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1 (1) The Act of Congress establishing the Treas2 ury Department of 1789 states that the Secretary of 

3 the Treasury shall prepare plans for improving and 

4 managing the revenue of the United States Govern5 ment and for the support of the public credit. 

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

7 codifies the duty ‘‘to prepare plans for improving 

8 and managing receipts of the United States Govern9 ment and managing the public debt’’. 

10 (3) In carrying out the statutory responsibilities 

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

12 public debt’’ the Secretary shall take all necessary 

13 actions to ensure all obligations of the United States 

14 Government with regard to debt held by the public 

15 are fully discharged when due. 

16 (4) Such actions may include the forgoing of 

17 obligations not related to debt held by the public for 

18 a period of time deemed necessary by the Secretary 

19 as authorized under section 324 of title 31, United 

20 States Code, which states that— 

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

22 ‘‘(1) dispose of obligations— 

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

24 United States Government; or 

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


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

2 of those obligations. 

3 ‘‘(b) The Secretary may dispose or extend the matu4 rity of obligations under subsection (a) of this section in 

5 the way, in amounts, at prices (for cash, obligations, prop6 erty, or a combination of cash, obligations, or property), 

7 and on conditions the Secretary considers advisable and 

8 in the public interest.’’. 

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

10 OF THE UNITED STATES GOVERNMENT. 

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

12 United States Government, as defined in section 3101 of 

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

14 the authority of the Department of the Treasury provided 

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

16 with legal tender the principal and interest on debt held 

17 by the public shall take priority over all other obligations 

18 incurred by the Government of the United States. 

19 (b) SPECIAL RULE FOR INSUFFICIENCY OF

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

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

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

23 ‘‘(c) If the Secretary expects that there will be insuffi24 cient funds available to dispose of all obligations consisting 

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


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1 on the next calendar day on which such obligations are 

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

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

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

5 to provide such funds as the Secretary deems prudent to 

6 dispose of obligations consisting of interest and principal 

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

8 30 calendar days. 

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

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

11 Secretary shall prioritize the disposal of obligations under 

12 subsection (a) and issuance of warrants under section 

13 321(a)(3) in that order the Secretary considers advisable 

14 and in the public interest.’’. 

Æ 


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