Title: Default Prevention Act
Policy area: Economics and Public Finance

Summary:
Default Prevention Act
This bill requires the Department of the Treasury to continue to borrow to pay the principal and interest on certain obligations if the debt of the United States exceeds the statutory limit.
If the debt limit is exceeded, Treasury must issue obligations solely for the payment of the principal and interest on debt held by the public or the Social Security trust funds. Obligations issued under this bill may not be used to compensate Members of Congress.
If Treasury exercises authority provided by this bill, it must submit to Congress a report that includes an accounting of: (1) the principal on mature obligations and interest that is due or accrued, and (2) obligations issued under this bill.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 422 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 422

  To ensure the payment of interest and principal of the debt of the 
                             United States.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 10, 2017

 Mr. McClintock (for himself, Ms. Foxx, Mr. Grothman, Mr. Flores, Mr. 
 Fleischmann, Mr. Franks of Arizona, Mr. Gosar, Mr. King of Iowa, Mr. 
  Rohrabacher, Mr. Meadows, Mr. Harris, Mr. Stewart, Mr. Tipton, Mr. 
 Wenstrup, Mr. Schweikert, Mr. Sanford, Mr. Bishop of Utah, Mr. Brooks 
of Alabama, Mr. Rothfus, Mr. Emmer, Mr. Loudermilk, Mr. Westerman, Mr. 
Chabot, Mr. DeSantis, Mr. Johnson of Ohio, Mr. Hensarling, Mr. Rokita, 
Mr. Chaffetz, Mr. Woodall, Mr. Renacci, Mr. DesJarlais, and Mr. Mooney 
of West Virginia) introduced the following bill; which was referred to 
                    the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To ensure the payment of interest and principal of the debt of the 
                             United States.

    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 ``Default Prevention Act''.

SEC. 2. PAYMENT OF PRINCIPAL AND INTEREST ON PUBLIC DEBT AND SOCIAL 
              SECURITY TRUST FUNDS.

    (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, the Secretary of the Treasury shall, in 
addition to any other authority provided by law, issue obligations 
under chapter 31 of title 31, United States Code, to pay with legal 
tender, and solely for the purpose of paying, the principal and 
interest on obligations of the United States described in subsection 
(b) after the date of the enactment of this Act.
    (b) Obligations Described.--For purposes of this subsection, 
obligations described in this subsection are obligations which are--
            (1) held by the public, or
            (2) held by the Old-Age and Survivors Insurance Trust Fund 
        and Disability Insurance Trust Fund.
    (c) Prohibition on Compensation for Members of Congress.--None of 
the obligations issued under subsection (a) may be used to pay 
compensation for Members of Congress.
    (d) 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 exceeded.
    (e) Report on Certain Actions.--
            (1) In general.--If, after the date of the enactment of 
        this Act, the Secretary of the Treasury exercises his authority 
        under subsection (a), the Secretary shall thereafter submit a 
        report each week the authority is in use providing an 
        accounting relating to--
                    (A) the principal on mature obligations and 
                interest that is due or accrued of the United States, 
                and
                    (B) any obligations issued pursuant to subsection 
                (a).
            (2) Submission.--The report required by paragraph (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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