I 
113TH CONGRESS 
1ST SESSION H. R. 3052 
To require that the Government prioritize all obligations on the debt held 
by the public in the event that the debt limit is reached, to require 
the sale of Federal assets, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 2, 2013 
Mr. SCHWEIKERT introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committees on 
Oversight and Government Reform, Financial Services, and Appropria-
tions, for a period to be subsequently determined by the Speaker, in each 
case for consideration of such provisions as fall within the jurisdiction of 
the committee concerned 
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, to require the sale of Federal 
assets, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Debt Ceiling Alter-
native Act’’. 
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SEC. 2. ENSURING THE GOVERNMENT DOES NOT DEFAULT 
ON ITS DEBT OBLIGATIONS. 
(a) IN GENERAL.—If the Department of the Treas-
ury issues a marketable borrowing estimate for a quarter 
that estimates that the debt of the United States, as de-
fined in section 3101 of title 31, United States Code, will 
reach the statutory limit during such quarter, the Presi-
dent shall ensure that the aggregate of the amounts depos-
ited in the Treasury from the sale of assets described 
under subsection (b) and the disposal of real property pur-
suant to subchapter VII of chapter 5 of subtitle I of title 
40, United States Code, and the amount of any recision 
of unobligated balances pursuant to section 5, is sufficient 
to prevent the debt of the United States from reaching 
such statutory limit during such quarter. 
(b) AUTHORITY TO SELL ASSETS.—For purposes of 
subsection (a), the President may order the sale of the 
following assets, with the proceeds from such sales depos-
ited in the Treasury: 
(1) On-balance sheet non-performing mortgages 
of the Federal National Mortgage Association. 
(2) Other mortgages owned or held by the Fed-
eral National Mortgage Association. 
(3) Real estate owned properties of the Federal 
National Mortgage Association. 
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(4) On-balance sheet non-performing mortgages 
of the Federal Home Loan Mortgage Corporation. 
(5) Other mortgages owned or held by the Fed-
eral Home Loan Mortgage Corporation. 
(6) Real estate owned properties of the Federal 
Home Loan Mortgage Corporation. 
(7) Mortgage-backed securities held by the 
Board of Governors of the Federal Reserve System 
or any Federal reserve bank. 
(c) USE OF FUNDS.—Any funds realized through this 
Act must be used for the retirement of old debt and 
issuance of new debt. 
SEC. 3. DISPOSAL OF REAL PROPERTY. 
(a) IN GENERAL.—Chapter 5 of subtitle I of title 40, 
United States Code, is amended by adding at the end the 
following: 
‘‘SUBCHAPTER VII—EXPEDITED DISPOSAL OF 
REAL PROPERTY 
‘‘§ 621. Definitions 
‘‘In this subchapter: 
‘‘(1) DIRECTOR.—The term ‘Director’ means 
the Director of the Office of Management and Budg-
et. 
‘‘(2) EXPEDITED
DISPOSAL
OF
REAL
PROP-
ERTY.—The term ‘expedited disposal of real prop-
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erty’ means a demolition of real property or a sale 
of real property for cash that is conducted under the 
requirements of section 545. 
‘‘(3) LANDHOLDING AGENCY.—The term ‘land-
holding agency’ has the meaning given that term 
under section 501(i)(3) of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11411(i)(3)). 
‘‘(4) REAL PROPERTY.— 
‘‘(A) IN GENERAL.—The term ‘real prop-
erty’ means— 
‘‘(i) a parcel of real property under 
the administrative jurisdiction of the Fed-
eral Government that is— 
‘‘(I) excess; 
‘‘(II) surplus; 
‘‘(III) underperforming; or 
‘‘(IV) otherwise not meeting the 
needs of the Federal Government, as 
determined by the Director; and 
‘‘(ii) a building or other structure lo-
cated on real property described under 
clause (i). 
‘‘(B) EXCLUSION.—The term ‘real prop-
erty’ excludes any parcel of real property or 
building or other structure located on such real 
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property that is to be closed or realigned under 
the Defense Base Closure and Realignment Act 
of 1990 (part A of title XXIX of Public Law 
101–510; 10 U.S.C. 2687 note). 
‘‘(5) REPRESENTATIVE OF THE HOMELESS.— 
The term ‘representative of the homeless’ has the 
meaning given that term under section 501(i)(4) of 
the McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11411(i)(4)). 
‘‘§ 622. Pilot program 
‘‘(a) ESTABLISHMENT.—The Director of the Office 
of Management and Budget shall conduct a pilot program, 
to be known as the ‘Federal Real Property Disposal Pilot 
Program’, under which real property that is not meeting 
Federal Government needs may be disposed of in accord-
ance with this subchapter. 
‘‘(b) TERMINATION.—The Federal Real Property 
Disposal Pilot Program shall terminate 5 years after the 
date of the enactment of this subchapter. 
‘‘§ 623. Selection of real properties 
‘‘(a) AGENCY RECOMMENDATION OF PROPERTIES.— 
The head of each executive agency shall recommend can-
didate disposition real properties to the Director for par-
ticipation in the pilot program established under section 
622. 
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‘‘(b) SELECTION
OF PROPERTIES.—The Director, 
with the concurrence of the head of the executive agency 
concerned and consistent with the criteria established in 
this subchapter, may then select such candidate real prop-
erties for participation in the pilot program and notify the 
recommending agency accordingly. 
‘‘(c) WEBSITE REQUIRED.—The Director shall en-
sure that all real properties selected for disposition under 
this section are listed on a website that shall— 
‘‘(1) be updated routinely; and 
‘‘(2) include the functionality to allow members 
of the public, at their option, to receive such updates 
through electronic mail. 
‘‘(d) NOTIFICATION OF PILOT PROGRAM.—The Sec-
retary of Housing and Urban Development shall ensure 
that efforts are taken to inform representatives of the 
homeless about— 
‘‘(1) the pilot program established under section 
622; and 
‘‘(2) the website under subsection (c). 
‘‘(e) AVAILABILITY
OF INFORMATION.—The Sec-
retary of Housing and Urban Development shall— 
‘‘(1) make available to the public upon request 
all information (other than valuation information), 
regardless of format, in the possession of the De-
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partment of Housing and Urban Development relat-
ing to the properties listed on the website under sub-
section (c), including environmental assessment 
data; and 
‘‘(2) maintain a current list of agency contacts 
for making referrals to inquiries for information re-
lating to specific properties. 
‘‘§ 624. Suitability determination 
‘‘(a) SUITABILITY OF PROPERTY TO ASSIST THE 
HOMELESS.—After the Director selects the candidate real 
properties that may participate in the pilot program under 
section 623, the Secretary of Housing and Urban Develop-
ment shall determine whether each such real property is 
suitable for use to assist the homeless. 
‘‘(b) 
SUITABILITY
DETERMINATION
REQUIRE-
MENTS.—The Secretary of Housing and Urban Develop-
ment shall base the suitability determination required 
under subsection (a)— 
‘‘(1) on the suitability criteria identified by the 
Secretary of Housing and Urban Development under 
section 501(a) of the McKinney-Vento Homeless As-
sistance Act (42 U.S.C. 11411(a)); 
‘‘(2) for real properties located within a Federal 
installation, campus, or compound, on whether such 
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property can easily be transported to an off-site lo-
cation; and 
‘‘(3) for real properties where the predominant 
use is other than housing, on whether the size of the 
real property is equal to or greater than 100,000 
square feet. 
‘‘(c) INFORMATION REQUIRED TO BE PUBLISHED 
ON THE WEBSITE.—Immediately after a determination of 
suitability is made under this section, the Director shall 
publish, on the website described in section 623(c) the fol-
lowing information: 
‘‘(1) The address of each such real property. 
‘‘(2) The result of the suitability determination 
required under subsection (a) for each such real 
property. 
‘‘(3) The date on which the suitability deter-
mination was made. 
‘‘§ 625. Unsuitable real property 
‘‘(a) 20-DAY HOLD REQUIRED AFTER DETERMINA-
TION OF UNSUITABILITY.—If real property is determined 
unsuitable under section 624, such real property may not 
be disposed of or otherwise used for any other purpose 
for at least 20 days after such determination was made. 
‘‘(b) APPEAL.— 
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‘‘(1) SECONDARY
REVIEW
OF
DETERMINA-
TION.—Not later than 20 days after real property 
has been determined unsuitable under section 624 
and before disposal of the real property in accord-
ance with subsection (d), any representative of the 
homeless may appeal to the Secretary of Housing 
and Urban Development for a secondary review of 
such determination. 
‘‘(2) CLEAR AND CONVINCING EVIDENCE.—Not 
later than 20 days after real property has been de-
termined unsuitable under subsection (b)(3) of sec-
tion 624, the Secretary of Housing and Urban De-
velopment shall deem such real property suitable 
notwithstanding the requirements of that subsection 
if a representative of the homeless has produced 
clear and convincing evidence that such property can 
be utilized for the benefit of the homeless. Any de-
termination under this paragraph shall be committed 
to the unreviewable discretion of the Secretary of 
Housing and Urban Development. 
‘‘(c) FINAL
SUITABILITY
DETERMINATION.—Not 
later than 20 days after the receipt of any appeal under 
subsection (b), the Secretary of Housing and Urban De-
velopment shall respond to such appeal and shall make 
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a final suitability determination regarding the real prop-
erty. 
‘‘(d) DISPOSAL OF UNSUITABLE REAL PROPERTY.— 
‘‘(1) NO APPEAL.—If at the end of the 20-day 
period required under subsection (a), no appeal for 
review of a determination of unsuitability is received 
by the Secretary of Housing and Urban Develop-
ment, such real property shall be disposed of in ac-
cordance with section 627. 
‘‘(2) 
DETERMINATION
OF
UNSUITABILITY 
AFTER SECONDARY REVIEW.—If after conducting a 
secondary review of a determination of unsuitability 
under subsection (b), the Secretary of Housing and 
Urban Development determines that the real prop-
erty remains unsuitable under subsection (c), such 
real property shall be disposed of in accordance with 
section 627. 
‘‘(3) DETERMINATION OF SUITABILITY AFTER 
SECONDARY
REVIEW.—If after conducting a sec-
ondary review of a determination of unsuitability 
under subsection (b), the Secretary of Housing and 
Urban Development determines that the real prop-
erty is suitable under subsection (c), such real prop-
erty shall be treated as suitable property for pur-
poses of section 626. 
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‘‘§ 626. Suitable real property 
‘‘(a) DISPOSAL OF SUITABLE REAL PROPERTY.— 
‘‘(1) APPLICATION
FOR
TRANSFER
OF
PROP-
ERTY.—If real property is determined suitable under 
section 624 or upon a secondary review under sec-
tion 625(d), any representative of the homeless shall 
have not more than 90 days after such determina-
tion to submit an application to the Secretary of 
Health and Human Services for the transfer of the 
real property to that representative. If an applica-
tion cannot be completed within the 90-day period 
due to non-material factors, the Secretary of Health 
and Human Services, with the concurrence of the 
appropriate landholding agency, may grant reason-
able extensions. 
‘‘(2) NO APPLICATION SUBMITTED.—If at the 
end of the time period described under paragraph 
(1), no representative of the homeless has submitted 
an application, such real property shall be disposed 
of in accordance with section 627. 
‘‘(b) CONSIDERATION OF APPLICATION.— 
‘‘(1) ASSESSMENT OF APPLICATION.—Not later 
than 20 days after the receipt of any application 
under subsection (a)(1), the Secretary of Health and 
Human Services shall assess such application and 
determine whether to approve or deny the request 
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for the transfer of the real property to such appli-
cant. 
‘‘(2) DENIAL OF APPLICATION.—If the applica-
tion of a representative of the homeless is denied by 
the Secretary of Health and Human Services under 
paragraph (1), such real property shall be disposed 
of in accordance with section 627. 
‘‘(3) APPROVAL OF APPLICATION.—If the appli-
cation of a representative of the homeless is ap-
proved by the Secretary of Health and Human Serv-
ices under paragraph (1), such real property shall be 
made promptly available to that representative by 
permit or lease, or by deed, as a public health use 
under subsections (a) through (d) of section 550. 
‘‘§ 627. Expedited disposal requirements 
‘‘(a) FAIR MARKET VALUE REQUIRED.—Real prop-
erty sold under the pilot program established under this 
subchapter shall be sold at not less than the fair market 
value, as determined by the Director in consultation with 
the head of the executive agency. Costs associated with 
such disposal may not exceed the fair market value of the 
property unless the Director approves incurring such 
costs. 
‘‘(b) MONETARY PROCEEDS REQUIRED.—Real prop-
erty may be sold under the pilot program established 
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under this subchapter only if the property will generate 
monetary proceeds to the Federal Government, as pro-
vided in subsection (a). A disposal of real property under 
the pilot program may not include any exchange, trade, 
transfer, acquisition of like-kind property, or other non- 
cash transaction as part of the disposal. 
‘‘(c) CONSTRUCTION.—Nothing in this subchapter 
shall be construed as terminating or in any way limiting 
authorities that are otherwise available to agencies under 
other provisions of law to dispose of Federal real property, 
except as provided in subsection (d). 
‘‘(d) EXPEDITED DISPOSAL EXEMPTIONS.—Any ex-
pedited disposal of real property conducted under this sub-
chapter shall not be subject to— 
‘‘(1) subchapter IV of this chapter; 
‘‘(2) sections 550 and 553 of this title; 
‘‘(3) section 501 of the McKinney-Vento Home-
less Assistance Act (42 U.S.C. 11411); 
‘‘(4) any other provision of law authorizing the 
no-cost conveyance of real property owned by the 
Federal Government; or 
‘‘(5) any congressional notification requirement 
other than that in section 545. 
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‘‘§ 628. Special rules for deposit and use of proceeds 
from disposal of real property 
‘‘(a) REIMBURSEMENT
OF
ADMINISTRATIVE
EX-
PENSES.—Executive agencies that dispose of real property 
under this subchapter shall be reimbursed from the pro-
ceeds, if any, from such disposal for the administrative 
expenses associated with such disposal. Such amounts 
shall be credited as offsetting collections to the account 
that incurred such expenses, to remain available until ex-
pended. 
‘‘(b) DEPOSIT OF PROCEEDS.— 
‘‘(1) IN GENERAL.—After payment of the ad-
ministrative expenses described under subsection (a), 
the balance of the proceeds shall be distributed as 
follows: 
‘‘(A) 80 percent shall be deposited into the 
Treasury as miscellaneous receipts. 
‘‘(B) 20 percent shall be deposited into the 
account of the agency that owned the real prop-
erty and initiated the disposal action. 
‘‘(2) FEDERAL REAL PROPERTY CAPITAL IM-
PROVEMENTS
AND
DISPOSAL
ACTIVITY
FUNDS.— 
Funds deposited under paragraph (1)(A) shall re-
main available until expended for the period of the 
pilot program, for activities related to Federal real 
property capital improvements and disposal activi-
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ties. Upon termination of the pilot program, any un-
obligated amounts shall be transferred to the general 
fund of the Treasury. 
‘‘§ 629. Limitation on number of permissible cash 
sales 
‘‘The total number of cash sales of real properties 
to be disposed of under this subchapter over the 5-year 
term of the Federal Real Property Disposal Pilot Program 
shall not exceed 750. 
‘‘§ 630. Government Accountability Office study 
‘‘(a) STUDY REQUIRED.—Not later than 36 months 
after the date of enactment of this subchapter, the Comp-
troller General of the United States shall submit to Con-
gress and make publicly available a study of the effective-
ness of the pilot program. 
‘‘(b) CONTENTS OF STUDY.—The study described 
under subsection (a) shall include at a minimum— 
‘‘(1) recommendations for permanent reforms 
to statutes governing real property disposals and no 
cost conveyances; and 
‘‘(2) recommendations for improving the perma-
nent process by which Federal properties are made 
available for use by the homeless.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.— 
The table of sections for chapter 5 of subtitle I of title 
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40, United States Code, is amended by inserting after the 
item relating to section 611 the following: 
‘‘SUBCHAPTER VII—EXPEDITED DISPOSAL OF REAL PROPERTY 
‘‘§ 621. Definitions. 
‘‘§ 622. Pilot program. 
‘‘§ 623. Selection of real properties. 
‘‘§ 624. Suitability determination. 
‘‘§ 625. Unsuitable real property. 
‘‘§ 626. Suitable real property. 
‘‘§ 627. Expedited disposal requirements. 
‘‘§ 628. Special rules for deposit and use of proceeds from disposal of real prop-
erty. 
‘‘§ 629. Limitation on number of permissible cash sales. 
‘‘§ 630. Government Accountability Office study.’’. 
SEC. 4. PAYMENT OF PRINCIPAL AND INTEREST ON PUBLIC 
DEBT AND SOCIAL SECURITY TRUST FUNDS. 
(a) IN GENERAL.—In the event that the debt of the 
United States Government, as defined in section 3101 of 
title 31, United States Code, reaches the statutory limit, 
the Secretary of the Treasury shall, in addition to any 
other authority provided by law, issue obligations under 
chapter 31 of title 31, United States Code, to pay with 
legal tender, and solely for the purpose of paying, the prin-
cipal and interest on obligations of the United States de-
scribed in subsection (b) after the date of the enactment 
of this Act. 
(b) OBLIGATIONS DESCRIBED.—For purposes of this 
subsection, obligations described in this subsection are ob-
ligations which are— 
(1) held by the public, or 
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(2) held by the Old-Age and Survivors Insur-
ance Trust Fund and Disability Insurance Trust 
Fund. 
(c) PROHIBITION ON COMPENSATION FOR MEMBERS 
OF CONGRESS.—None of the obligations issued under sub-
section (a) may be used to pay compensation for Members 
of Congress. 
(d) OBLIGATIONS EXEMPT FROM PUBLIC DEBT 
LIMIT.—Obligations issued under subsection (a) shall not 
be taken into account in applying the limitation in section 
3101(b) of title 31, United States Code, to the extent that 
such obligation would otherwise cause the limitation in 
section 3101(b) of title 31, United States Code, to be ex-
ceeded. 
(e) REPORT ON CERTAIN ACTIONS.— 
(1) IN GENERAL.—If, after the date of the en-
actment of this Act, the Secretary of the Treasury 
exercises his authority under subsection (a), the Sec-
retary shall thereafter submit a report each week the 
authority is in use providing an accounting relating 
to— 
(A) the principal on mature obligations 
and interest that is due or accrued of the 
United States, and 
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(B) any obligations issued pursuant to 
subsection (a). 
(2) SUBMISSION.—The report required by para-
graph (1) shall be submitted to the Committee on 
Ways and Means of the House of Representatives 
and the Committee on Finance of the Senate. 
SEC. 5. RESCISSION OF UNOBLIGATED BALANCES. 
(a) IN GENERAL.—If a Federal budget deficit exists 
in 2014, not later than July 16, 2015, of the funds made 
available before October 1, 2009, the President may re-
scind any unobligated balances of such funds. 
(b) REPORT.—On the same date that the President 
orders a rescission under subsection (a), the President 
shall submit a report to Congress containing the total 
amounts of the funds rescinded and the affected accounts. 
Æ 
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