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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 187 Reported in House (RH)]

<DOC>

                                                 Union Calendar No. 279
118th CONGRESS
  2d Session
                                H. R. 187

                          [Report No. 118-340]

  To ensure the payment of interest and principal of the debt of the 
                             United States.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 9, 2023

 Mr. McClintock (for himself, Mr. Duncan, Mr. Grothman, and Mr. Gaetz) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

                            January 9, 2024

                     Additional sponsor: Mrs. Lesko

                            January 9, 2024

  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]
[For text of introduced bill, see copy of bill as introduced on January 
                                9, 2023]

_______________________________________________________________________

                                 A BILL

 
  To ensure the payment of interest and principal of the debt of the 
                             United States.

 

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Default Prevention Act''.

SEC. 2. PAYMENT OF OBLIGATIONS.

    (a) In General.--At any time that the debt of the United States 
Government subject to limitation under section 3101 of title 31, United 
States Code, has reached the limitation imposed under such section, the 
Secretary of the Treasury (hereafter in this section referred to as 
``the Secretary'') shall--
            (1) pay Tier I obligations as such obligations become due,
            (2) issue such obligations under chapter 31 of title 31, 
        United States Code, as--
                    (A) are necessary to make the payments described in 
                paragraph (1), or
                    (B) are to be held exclusively by a trust fund 
                referred to in subsection (b)(1)(A),
            (3) pay Tier III obligations only to the extent that the 
        Secretary can still pay all Tier II obligations as such 
        obligations become due,
            (4) pay Tier IV obligations only to the extent that the 
        Secretary can still pay all Tier II and Tier III obligations as 
        such obligations become due,
            (5) pay Tier V obligations only to the extent that the 
        Secretary can still pay all Tier II, Tier III, and Tier IV 
        obligations as such obligations become due, and
            (6) submit to the Committee on Ways and Means of the House 
        of Representatives and the Committee on Finance of the Senate a 
        weekly written report containing the information described in 
        subsection (d).
    (b) Definitions.--For purposes of this section--
            (1) Tier i obligations.--The term ``Tier I obligations'' 
        means payments necessary to provide any of the following:
                    (A) Payment with legal tender pursuant to the 
                authority provided under section 3123 of title 31, 
                United States Code, of principal and interest on debt 
                held by--
                            (i) the public,
                            (ii) the Federal Old-Age and Survivors 
                        Insurance Trust Fund or the Federal Disability 
                        Insurance Trust Fund, or
                            (iii) the Federal Hospital Insurance Trust 
                        Fund or the Federal Supplementary Medical 
                        Insurance Trust Fund.
                    (B) Payments under the Medicare program under title 
                XVIII of the Social Security Act (42 U.S.C. 1395 et 
                seq.).
            (2) Tier ii obligations.--The term ``Tier II obligations'' 
        means payments necessary to provide any of the following:
                    (A) Any obligation of the Department of Defense.
                    (B) Benefits under laws administered by the 
                Secretary of Veterans Affairs.
            (3) Tier iii obligations.--The term ``Tier III 
        obligations'' means any obligation of the United States which 
        is not a Tier I, Tier II, Tier IV, or Tier V obligation.
            (4) Tier iv obligations.--The term ``Tier IV obligations'' 
        means any payment which constitutes any of the following:
                    (A) Compensation for any Federal employee for 
                official time under section 7131 of such title 5, 
                United States Code.
                    (B) Any payment for travel expenses for any officer 
                or employee of the Executive branch of Government, 
                including the President and Vice President, unless such 
                payment is a Tier I or Tier II obligation.
                    (C) Compensation of any officer or employee of the 
                Executive branch of Government (other than an 
                individual in the competitive service, as defined in 
                section 2102 of title 5, United States Code), including 
                the President and Vice President, unless such 
                compensation is a Tier I or Tier II obligation.
            (5) Tier v obligations.--The term ``Tier V obligations'' 
        means compensation of any Member of Congress (as that term is 
        defined in section 2106 of title 5, United States Code).
    (c) Coordination With Public Debt Limit.--Obligations issued under 
subsection (a)(2) shall not be taken into account as subject to the 
limitation imposed under section 3101(b) of title 31, United States 
Code. The preceding sentence shall not apply with respect to any 
obligation after the first date (after the issuance of such obligation) 
on which any modification or suspension of such limitation takes 
effect.
    (d) Weekly Reports.--The written report referred to in subsection 
(a)(6) shall include, with respect to the period covered by such 
report--
            (1) the amount of Tier I obligations paid under subsection 
        (a)(1) during such period,
            (2) the amount of obligations issued under subsection 
        (a)(2) during such period, and
            (3) the amount of Tier II obligations, Tier III 
        obligations, Tier IV obligations, and Tier V obligations which 
        were paid during such period (stated separately for each tier) 
        and the aggregate amount of such obligations which were due and 
        unpaid as of the close of such period (stated separately for 
        each tier).
    (e) No Inference With Respect to Existing Authority to Prioritize 
Payments.--During any period with respect to which this section does 
not apply, nothing in this section shall be interpreted to restrict the 
authority of the Secretary to prioritize the payment of certain 
obligations over other obligations.
                                                 Union Calendar No. 279

118th CONGRESS

  2d Session

                               H. R. 187

                          [Report No. 118-340]

_______________________________________________________________________

                                 A BILL

  To ensure the payment of interest and principal of the debt of the 
                             United States.

_______________________________________________________________________

                            January 9, 2023

              Referred to the Committee on Ways and Means

                            January 9, 2024

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
```