‘‘(I) has a maturity fixed with due regard 
for the needs of the Trust Funds, 
‘‘(II) bears interest at a rate at least equal 
to the average market yield (computed by the 
Managing Trustee on the basis of market 
quotations as of the end of the calendar month 
next preceding the date of purchase) on all 
marketable interest-bearing obligations of the 
United States then forming a part of the public 
debt which are not due or callable until after 
the expiration of four years from the end of 
such calendar month, and 
‘‘(III) is subject to an option to redeem 
such obligations at any time at the purchase 
price.
‘‘(B) The term ‘total budget of the United 
States Government’ means all spending and receipt
accounts of the United States Government that are 
designated as on-budget or off-budget accounts. 
‘‘(4) The preceding provisions of this subsection shall 
be subject to such reforms of the old-age, survivors, and 
disability insurance program under this title as may be 
provided in legislation enacted after the date of the enact-
ment of the Social Security Strengthening and Protection 
Act of 2003.’’.
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to fiscal years begin-
ning on or after October 1, 2004. 
SEC. 3. PROTECTION OF THE SOCIAL SECURITY TRUST 
FUNDS FROM THE PUBLIC DEBT LIMIT. 
(a) PROTECTION
OF
TRUST
FUNDS.—Notwith-
standing any other provision of law—
(1) no officer or employee of the United States 
may—
(A) delay the deposit of any amount into 
(or delay the credit of any amount to) the Fed-
eral Old-Age and Survivors Insurance Trust 
Fund or the Federal Disability Insurance Trust 
Fund or otherwise vary from the normal terms, 
procedures, or timing for making such deposits 
or credits, or
(B) refrain from the investment in public 
debt obligations of amounts in either of such 
Trust Funds, 
if a purpose of such action or inaction is to not in-
crease the amount of outstanding public debt obliga-
tions, and 
(2) no officer or employee of the United States 
may disinvest amounts in either of such Trust 
Funds which are invested in public debt obligations
if a purpose of the disinvestment is to reduce the 
amount of outstanding public debt obligations. 
(b) PROTECTION OF BENEFITS AND EXPENDITURES 
FOR ADMINISTRATIVE EXPENSES.—
(1) IN GENERAL.—Notwithstanding subsection 
(a), during any period for which cash benefits or ad-
ministrative expenses would not otherwise be payable 
from the Federal Old-Age and Survivors Insurance 
Trust Fund or the Federal Disability Insurance 
Trust Fund by reason of an inability to issue further 
public debt obligations because of the applicable 
public debt limit, public debt obligations held by 
such Trust Fund shall be sold or redeemed only for 
the purpose of making payment of such benefits or 
administrative expenses and only to the extent cash 
assets of such Trust Fund are not available from 
month to month for making payment of such bene-
fits or administrative expenses. 
(2) ISSUANCE OF CORRESPONDING DEBT.—For 
purposes of undertaking the sale or redemption of 
public debt obligations held by the Federal Old-Age 
and Survivors Insurance Trust Fund or the Federal 
Disability Insurance Trust Fund pursuant to para-
graph (1), the Secretary of the Treasury may issue 
corresponding public debt obligations to the public,
in order to obtain the cash necessary for payment of 
benefits or administrative expenses from such Trust 
Fund, notwithstanding the public debt limit. 
(3) ADVANCE NOTICE OF SALE OR REDEMP-
TION.—Not less than 3 days prior to the date on 
which, by reason of the public debt limit, the Sec-
retary of the Treasury expects to undertake a sale 
or redemption authorized under paragraph (1), the 
Secretary of the Treasury shall report to each House 
of the Congress and to the Comptroller General of 
the United States regarding the expected sale or re-
demption. Upon receipt of such report, the Comp-
troller General shall review the extent of compliance 
with subsection (a) and paragraphs (1) and (2) of 
this subsection and shall issue such findings and rec-
ommendations to each House of the Congress as the 
Comptroller General considers necessary and appro-
priate. 
(c) PUBLIC DEBT OBLIGATION.—For purposes of 
this section, the term ‘‘public debt obligation’’ means any 
obligation subject to the public debt limit established 
under section 3101 of title 31, United States Code.
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