I 
115TH CONGRESS 
1ST SESSION H. R. 3167 
To provide that, in the event that the Secretary of the Treasury estimates 
that the debt ceiling will be reached, the Secretary is required to issue 
GDP-linked bonds to pay the principal and interest on the public debt 
and the President is authorized to request the rescission of certain 
unobligated balances and sell certain mortgage-related assets, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 6, 2017 
Mr. SCHWEIKERT (for himself, Mr. FRANKS of Arizona, Mr. MEADOWS, and 
Mr. FORTENBERRY) introduced the following bill; which was referred to 
the Committee on Ways and Means, and in addition to the Committees 
on Financial Services, the Budget, and Rules, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To provide that, in the event that the Secretary of the 
Treasury estimates that the debt ceiling will be reached, 
the Secretary is required to issue GDP-linked bonds to 
pay the principal and interest on the public debt and 
the President is authorized to request the rescission of 
certain unobligated balances and sell certain mortgage- 
related 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, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Debt Ceiling Alter-
native Act’’. 
SEC. 2. ESTIMATE THAT BORROWING WILL REACH THE 
STATUTORY DEBT LIMIT. 
If the Secretary of the Treasury makes an estimate 
of net marketable borrowing for a quarter that estimates 
that the debt of the United States, as defined in section 
3101 of title 31, United States Code, will reach the statu-
tory limit during such quarter, the Secretary shall imme-
diately notify Congress of such estimate, and the Sec-
retary of the Treasury shall issue bonds described under 
section 3 and the President may take the actions described 
under sections 4 and 5. 
SEC. 3. ISSUANCE OF GDP-LINKED BONDS TO PAY THE 
PRINCIPAL AND INTEREST ON THE PUBLIC 
DEBT. 
(a) IN GENERAL.—Upon the issuance of a notifica-
tion to Congress under section 2, the Secretary of the 
Treasury shall issue bonds— 
(1) with an interest rate linked to the nominal 
gross domestic product of the United States; and 
(2) the proceeds from which may only be used 
to pay the principal and interest on obligations of 
the United States held by the public or the Old-Age 
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and Survivors Insurance Trust Fund and Disability 
Insurance Trust Fund. 
(b) 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. 
(c) REPORT ON CERTAIN ACTIONS.— 
(1) IN
GENERAL.—If the Secretary of the 
Treasury issues bonds under subsection (a), the Sec-
retary shall thereafter submit a report each week, 
until all such bonds are redeemed, providing an ac-
counting relating to— 
(A) the principal on mature obligations 
and interest that is due or accrued of the 
United States; and 
(B) any bonds issued pursuant to sub-
section (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. 
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SEC. 4. RESCISSION OF UNOBLIGATED BALANCES. 
(a) IDENTIFICATION OF UNOBLIGATED BALANCES.— 
Upon the issuance of a notification under section 2, the 
President may issue a message to Congress containing a 
list of budget authority proposed to be rescinded. Such 
list may only contain items related to unobligated balances 
of funds made available before the beginning of the fiscal 
year during which such notification is made. 
(b) EXPEDITED CONSIDERATION OF RESCISSIONS.— 
A message issued pursuant to subsection (a) shall be 
deemed a special message for purposes of the expedited 
procedures described under section 1017 of the Congres-
sional Budget and Impoundment Control Act of 1974 (2 
U.S.C. 688). 
SEC. 5. SALE OF MORTGAGE-RELATED ASSETS. 
Upon the issuance of a notification to Congress under 
section 2, the President may order the sale of the following 
assets, with the proceeds from such sales deposited 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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