End the Threat of Default Act
Bill: S.1785 | Sponsor: Sen. Schatz, Brian (D-HI)
Policy area: Economics and Public Finance

Summary:
End the Threat of Default Act
This bill repeals the public debt limit, which applies to most debt held by the federal government.

To repeal the debt ceiling, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``End the Threat of Default Act''.

SEC. 2. REPEAL OF DEBT CEILING.

    (a) In General.--Section 3101 of title 31, United States Code, is 
repealed.
    (b) Technical and Conforming Amendments.--
            (1) Section 301(b)(5) of the Congressional Budget Act of 
        1974 (2 U.S.C. 632(b)(5)) is amended by striking ``debt subject 
        to limit (in section 3101 of title 31 of the United States 
        Code)'' and inserting ``face value of obligations issued under 
        chapter 31 of title 31, United States Code, and the face amount 
        of obligations whose principal and interest are guaranteed by 
        the United States Government (except guaranteed obligations 
        held by the Secretary of the Treasury)''.
            (2) Section 8348 of title 5, United States Code, is amended 
        by striking subsections (j), (k), and (l).
            (3) Section 8438 of title 5, United States Code, is amended 
        by striking subsections (g) and (h).
            (4) Section 14(d)(2) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1824(d)(2)) is amended--
                    (A) by striking subparagraph (A); and
                    (B) by redesignating subparagraphs (B), (C), and 
                (D) as subparagraphs (A), (B), and (C), respectively.
            (5) Section 3101A of title 31, United States Code, is 
        repealed.
            (6) Section 3130(e)(2) of title 31, United States Code, is 
        amended by striking ``total amount of the obligations subject 
        to the public debt limit established in section 3101 of this 
        title'' and inserting ``face value of obligations issued under 
        this chapter and the face amount of obligations whose principal 
        and interest are guaranteed by the United States Government 
        (except guaranteed obligations held by the Secretary of the 
        Treasury)''.
            (7) Section 1145(b) of the Social Security Act (42 U.S.C. 
        1320b-15(b)) is amended by striking ``any obligation subject to 
        the public debt limit established under section 3101 of title 
        31, United States Code'' and inserting ``any obligation issued 
        under chapter 31 of title 31, United States Code, and any 
        obligation whose principal and interest are guaranteed by the 
        United States Government (except guaranteed obligations held by 
        the Secretary of the Treasury)''.
            (8) The table of sections for chapter 31 of title 31, 
        United States Code, is amended by striking the items relating 
        to sections 3101 and 3101A.
    (c) Savings Provisions.--
            (1) Civil service retirement and disability fund.--
        Notwithstanding the amendments made by subsection (b), 
        paragraphs (2), (3), and (4) of subsection (j) and subsection 
        (l)(1) of section 8348 of title 5, United States Code, as in 
        effect on the day before the date of enactment of this Act, 
        shall apply to any debt issuance suspension period (as defined 
        under section 8348(j)(5) of such title) that is in effect on 
        the date of enactment of this Act.
            (2) Thrift savings fund.--Notwithstanding the amendments 
        made by subsection (b), paragraphs (2), (3), and (4) of 
        subsection (g) and subsection (h)(1) of section 8438 of title 
        5, United States Code, as in effect on the day before the date 
        of enactment of this Act, shall apply to any debt issuance 
        suspension period (as defined under section 8438(g)(6) of such 
        title) that is in effect on the date of enactment of this Act.
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