I
104TH CONGRESS
2D SESSION
H. R. 2897
To increase the public debt limit, to protect the social security trust funds
and other federal trust funds and accounts invested in public debt obliga-
tions, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 25, 1996
Mr. SMITH of Michigan introduced the following bill; which was referred to
the Committee on Ways and Means, and in addition to the Committee
on Government Reform and Oversight, for a period to be subsequently
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned
A BILL
To increase the public debt limit, to protect the social secu-
rity trust funds and other federal trust funds and ac-
counts invested in public debt obligations, 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. INCREASE IN PUBLIC DEBT LIMIT.
Subsection (b) of section 3101 of title 31, United
States Code, is amended by striking the dollar amount
contained therein and inserting ‘‘$4,920,000,000,000’’.
SEC. 2. APPLICABILITY OF PUBLIC DEBT LIMIT TO FED-
ERAL TRUST FUNDS AND OTHER FEDERAL
ACCOUNTS.
(a) PROTECTION
OF FEDERAL 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) any Fed-
eral 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 any Federal
fund,
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 any Federal fund which
are invested in public debt obligations if a purpose
of the disinvestment is to reduce the amount of out-
standing 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 a covered benefits fund by reason of an inabil-
ity to issue further public debt obligations because
of the applicable public debt limit, public debt obli-
gations held by such covered benefits 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 the covered
benefits fund are not available from month to month
for making payment of such benefits or administra-
tive expenses.
(2) ISSUANCE OF CORRESPONDING DEBT.—For
purposes of undertaking the sale or redemption of
public debt obligations held by a covered benefits
fund pursuant to paragraph (1), the Secretary of the
Treasury may issue corresponding public debt obli-
gations to the public, in order to obtain the cash
necessary for payment of benefits or administrative
expenses from such covered benefits fund, notwith-
standing 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.
(d) FEDERAL FUND.—For purposes of this section,
the term ‘‘Federal fund’’ means any Federal trust fund
or Government account established pursuant to Federal
law to which the Secretary of the Treasury has issued or
is expressly authorized by law directly to issue obligations
under chapter 31 of title 31, United States Code, in re-
spect of public money, money otherwise required to be de-
posited in the Treasury, or amounts appropriated.
(e) COVERED BENEFITS FUND.—For purposes of
subsection (b), the term ‘‘covered benefits fund’’ means
any Federal fund from which cash benefits are payable
by law in the form of retirement benefits, separation pay-
ments, life or disability insurance benefits, or dependent’s
or survivor’s benefits, including (but not limited to) the
following:
(1) the Federal Old-Age and Survivors Insur-
ance Trust Fund;
(2) the Federal Disability Insurance Trust
Fund;
(3) the Civil Service Retirement and Disability
Fund;
(4) the Government Securities Investment
Fund;
(5) the Department of Defense Military Retire-
ment Fund;
(6) the Unemployment Trust Fund;
(7) each of the railroad retirement funds and
accounts;
(8) the Department of Defense Education Ben-
efits Fund and the Post-Vietnam Era Veterans Edu-
cation Fund; and
(9) the Black Lung Disability Trust Fund.
(f) CONFORMING AMENDMENTS.—
(1) IN GENERAL.—Subsections (j), (k), and (l)
of section 8348 of title 5, United States Code, and
subsections (g) and (h) of section 8438 of such title
are hereby repealed.
(2) RETENTION
OF
AUTHORITY
TO
RESTORE
TRUST FUNDS WITH RESPECT TO ACTIONS TAKEN
BEFORE DATE OF ENACTMENT.—
(A) IN GENERAL.—The repeals made by
paragraph (1) shall not apply to the restoration
requirements imposed on the Secretary of the
Treasury (or the Executive Director referred to
in section 8438(g)(5) of title 5, United States
Code) with respect to amounts attributable to
actions taken under subsection (j)(1) or (k) of
section 8348, or section 8438(g)(1), of such
title before the date of the enactment of this
Act.
(B) RESTORATION
REQUIREMENTS.—For
purposes of subparagraph (A), the term ‘‘res-
toration requirements’’ means the requirements
imposed by—
(i) paragraphs (2), (3), and (4) of
subsection (j), and subsection (l)(1), of
section 8348 of such title, and
(ii) paragraphs (2), (3), (4), and (5)
of subsection (g), and subsection (h)(1), of
section 8438 of such title.
SEC. 3. LIMITATION ON ISSUANCE OF PUBLIC DEBT OBLI-
GATIONS AFTER DECEMBER 31, 2001.
No obligation subject to the limitation under section
3101(b) of title 31, United States Code, may be issued
to the public after December 31, 2001. The preceding sen-
tence shall not apply to any obligation (or series of obliga-
tions) issued to refund an obligation issued before January
1, 2002.
SEC. 4. AUTHORITY TO ESTABLISH PRIORITIES IN MANAG-
ING CASH POSITION OF UNITED STATES.
Section 3101 of title 31, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(d) Whenever the United States Government is un-
able to borrow in a timely manner sufficient funds to meet
its needs because of the limit set forth in subsection (b),
the Secretary of the Treasury is authorized to manage the
cash position of the United States Government pursuant
to priorities established by the President for making pay-
ments.’’.