To specify the priority of the obligations of the United States Government if the debt ceiling is reached, to provide for an emergency appropriation of funds to pay for certain defense and national security obligations during a gap in funding, and for other purposes.

SECTION 1. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) clear funding priorities should be laid out in case the 
        United States Government reaches the statutory debt limit or 
        experiences a funding gap, and that the top priorities should 
        be--
                    (A) paying principal and interest on the public 
                debt;
                    (B) paying the salaries of members of our Armed 
                Forces and paying for vital national security 
                priorities as determined by the President; and
                    (C) paying Social Security benefits; and
            (2) funding for components of the Federal Government that 
        are not essential should be significantly limited if the 
        government reaches the statutory debt limit.

SEC. 2. PRIORITY OF PAYMENTS IF THE DEBT CEILING IS REACHED.

    (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, amounts necessary for obligations incurred 
by the Government of the United States shall be made available as 
prioritized in the following order (with items listed in descending 
order of prioritization):
            (1) amounts necessary to carry out the authority of the 
        Department of the Treasury provided in section 3123 of title 
        31, United States Code, to pay with legal tender the principal 
        and interest on debt held by the public;
            (2) such amounts as the Secretary of Defense (and the 
        Secretary of Homeland Security in the case of the Coast Guard) 
        determines to be necessary to continue to provide pay and 
        allowances (without interruption) to members of the Army, Navy, 
        Air Force, Marine Corps, and Coast Guard, including reserve 
        components thereof, who perform active service;
            (3) such amounts as the President certifies to the Congress 
        are necessary to carry out vital national security priorities;
            (4) amounts necessary to carry out the authority of the 
        Commissioner of Social Security to pay monthly old-age, 
        survivors', and disability insurance benefits under title II of 
        the Social Security Act; and
            (5) subject to subsection (b), amounts necessary to satisfy 
        all other obligations, in an order of priority determined by 
        the President under section 4(2).
    (b) Limitation on Certain Obligations.--With respect to a 
department or agency described under subsection (c) or an international 
organization or fund (as defined by the President), amounts made 
available pursuant to subsection (a)(5) to satisfy obligations for such 
department, agency, organization, or fund may not exceed an amount that 
is equal to 20 percent of the amount that would have been made 
available to satisfy such obligations if the statutory limit described 
under subsection (a) had not been reached.
    (c) Certain Departments and Agencies.--A department or agency is 
described under this subsection if it is one of the following:
            (1) The Department of Education.
            (2) The Department of Energy.
            (3) The Department of Health & Human Services.
            (4) The Department of Housing and Urban Development.
            (5) The Department of the Interior.
            (6) The Department of Labor.
            (7) The Department of Transportation.
            (8) The Environmental Protection Agency.
            (9) The National Science Foundation.
            (10) The Office of Personnel Management.
            (11) The United States Agency for International 
        Development.
            (12) An independent establishment, as defined under section 
        104 of title 5, United States Code.

SEC. 3. EMERGENCY APPROPRIATION OF FUNDS FOR DEFENSE AND NATIONAL 
              SECURITY DURING A FUNDING GAP.

    (a) In General.--During any funding gap, the Secretary of the 
Treasury shall make available, out of any amounts in the general fund 
of the Treasury not otherwise appropriated--
            (1) such amounts as the Secretary of Defense (and the 
        Secretary of Homeland Security in the case of the Coast Guard) 
        determines to be necessary to continue to provide pay and 
        allowances (without interruption) to members of the Army, Navy, 
        Air Force, Marine Corps, and Coast Guard, including reserve 
        components thereof, who perform active service during the 
        funding gap; and
            (2) such amounts as the President certifies to the Congress 
        are necessary to carry out vital national security priorities.
    (b) Funding Gap Defined.--For purposes of this section and with 
respect to an obligation incurred by the Government of the United 
States, the term ``funding gap'' means any period of time after the 
beginning of a fiscal year for which interim or full-year 
appropriations for such obligation have not been enacted.

SEC. 4. REPORT ON PRIORITIZATION.

    Not later than the end of the 30-day period beginning on the date 
of the enactment of this Act, the President shall submit to the 
Congress--
            (1) a plan explaining the continuation of Government 
        operations 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;
            (2) the prioritization of the obligations of the United 
        States Government, other than those listed under paragraphs 
        (1), (2), (3), and (4) of section 2, that the President 
        determines appropriate 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; and
            (3) a plan explaining the continuation of Government 
        operations in the event of a funding gap, as defined under 
        section 3(b), including the system of determining which Federal 
        employees are essential during such funding gap.

Summary: Sets forth the priority of the payment of obligations incurred by the U.S. government in the event that U.S. debt reaches the statutory limit.

Limits certain obligations for specified departments, agencies, international organizations, and funds to 20% of the amount that would have been made available to satisfy such obligations if such limit had not been reached.

Directs the Secretary of the Treasury, during any funding gap, to make emergency appropriations: (1) to continue to provide pay and allowances (without interruption) to members of the Army, Navy, Air Force, Marine Corps, and Coast Guard, including the reserve components thereof, who perform active service; and (2) for such amounts as the President certifies to Congress as are necessary to carry out vital national security priorities.

Requires the President to submit a specified prioritization report to Congress.