Debt Limit Control and Accountability Act of 2017

To prohibit the Secretary of the Treasury from using extraordinary measures to prevent the Government from reaching the statutory debt limit, or using extraordinary measures once such limit has been reached, and for other purposes. 1. Short title This Act may be cited as the Debt Limit Control and Accountability Act of 2017 2. Prohibition on use of extraordinary measures (a) In general The Secretary of the Treasury may not use extraordinary measures— (1) to prevent the United States from reaching the statutory debt limit under section 3101 of title 31, United States Code; or (2) once such debt limit has been reached. (b) Extraordinary measures defined For purposes of this section, the term extraordinary measures (1) suspending the investments of the Thrift Savings Plan G Fund; (2) suspending the investments of the Exchange Stabilization Fund; (3) suspending the issuance of new securities to the Civil Service Retirement and Disability Fund and Postal Service Retiree Health Benefits Fund; (4) redeeming early securities held by the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund; (5) suspending the issuance of new State and Local Government Series securities and savings bonds; (6) replacing Treasury securities subject to the debt limit with debt issued by the Federal Financing Bank; or (7) any other extraordinary actions taken by the Secretary to avoid defaulting on the obligations of the United States. 3. Repeal of Presidential modification of the debt ceiling Chapter 31 (1) by repealing section 3101A; and (2) in the table of contents for such chapter, by striking the item relating to section 3101A. 4. Sense of Congress It is the sense of Congress that— (1) the statutory debt limit under section 3101 of title 31, United States Code, should not be suspended; (2) if the United States reaches the statutory debt limit, the Secretary of the Treasury should prioritize payments to bondholders, so as to avoid defaulting on any maturing debt; and (3) future increases in the statutory debt limit should be tied to or contingent upon agreements to cut or control spending.

Summary: Debt Limit Control and Accountability Act of 2017 This bill prohibits the Department of the Treasury from using extraordinary measures either to prevent the United States from reaching the statutory debt limit or once the debt limit has been reached. Under the bill, extraordinary measures are: suspending investments of the Thrift Savings Plan G Fund or the Exchange Stabilization Fund, suspending the issuance of new securities to the Civil Service Retirement and Disability Fund and Postal Service Retiree Health Benefits Fund, redeeming early securities held by the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund, suspending the issuance of new State and Local Government Series securities and savings bonds, replacing Treasury securities subject to the debt limit with debt issued by the Federal Financing Bank, or any other extraordinary actions taken by Treasury to avoid defaulting on the obligations of the United States. The bill also repeals statutory provisions that established procedures for presidential modification of the debt ceiling.