DEBT Act

To amend title 31, United States Code, to require the Secretary of the Treasury to appear before Congress before the debt limit is reached or extraordinary measures are taken to prevent default. 1. Short title This Act may be cited as the Debt Explanation Before Taxwriters Act DEBT Act 2. Secretary of Treasury appearance before Congress before reaching debt limit or extraordinary measures taken (a) In general Subchapter II of chapter 31 3131. Secretary of Treasury appearance before Congress before reaching debt limit or extraordinary measures taken (a) In general Not more than sixty days and not less than twenty-one days prior to any date on which the Secretary of the Treasury anticipates either that the public debt will reach the limit specified under section 3101, as modified by section 3101A, or that extraordinary measures will be taken to prevent the United States from defaulting on its obligations, the Secretary shall appear before the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate, to submit a detailed explanation of— (1) any extraordinary measures the Secretary will take to fund Federal government obligations prior to such increase and an estimate of the administrative cost of taking such extraordinary measures; and (2) any reversal of such measures, and any other changes taken in the funding of Federal government obligations, as a result of such increase. (b) Extraordinary measures defined For purposes of this section, the term extraordinary measures (1) Suspending sales of State and Local Government Series Treasury securities. (2) Redeeming existing, and suspending new, investments of the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund. (3) Suspending reinvestment of the Government Securities Investment Fund. (4) Suspending reinvestment of the Exchange Stabilization Fund. (5) Directing or approving the issuance of debt by the Federal Financing Bank for the purpose of entering into an exchange transaction for debt that is subject to the limit under this section. (6) Suspending investments in the Government Securities Investment Fund of the Thrift Savings Fund. (7) Suspending investments in the stabilization fund established under section 5302 of title 31, United States Code. (8) Suspending new investments in the Civil Service Retirement and Disability Fund or the Postal Service Retiree Health Benefits Fund. (9) Selling or redeeming securities, obligations, or other invested assets of the Civil Service Retirement and Disability Fund or the Postal Service Retiree Health Benefits Fund before maturity. . (b) Clerical amendment The table of analysis for chapter 31 section 3130 3131. Secretary of Treasury appearance before Congress before reaching debt limit or extraordinary measures taken. .

Summary: Debt Explanation Before Taxwriters Act or the DEBT Act This bill requires the Secretary of the Treasury to appear before the House Ways and Means Committee and the Senate Finance Committee before the federal debt limit is reached or extraordinary measures are taken to prevent the United States from defaulting on its obligations. The term extraordinary measures generally refers to a series of actions that the Department of the Treasury may implement to allow the United States to borrow additional funds without exceeding the debt limit. The measures generally include suspensions or delays of debt sales and suspensions or redemptions of investments in certain government funds. The bill requires the Secretary of the Treasury to appear before the committees to provide a detailed explanation of (1) the extraordinary measures that Treasury will take and the administrative costs of taking the measures, and (2) any reversal of such measures and any other changes in the funding of federal government obligations.