Debt Ceiling Alternative Act

Bill: 116-hr-5083
Sponsor: Rep. Schweikert, David [R-AZ-6]
Introduced: 2019-11-14 in the House
Policy area: Economics and Public Finance
Subjects: Appropriations
Budget deficits and national debt
Budget process
Congressional oversight
Congressional-executive branch relations
Federal Reserve System
Government corporations and government-sponsored enterprises
Government trust funds
Housing finance and home ownership
Interest, dividends, interest rates
Legislative rules and procedure
Presidents and presidential powers, Vice Presidents
Securities
Social security and elderly assistance

Summary:
action_date: 2019-11-14
text: 

Debt Ceiling Alternative Act 

 
This bill establishes requirements and authorities for notifying Congress, issuing bonds, proposing rescissions, and selling assets if the debt limit will be reached. 
 
The Department of the Treasury must notify Congress if it estimates that the U.S. debt will reach the statutory debt limit during a quarter. After Congress is notified, Treasury must issue bonds that (1) have an interest rate linked to the nominal gross domestic product of the United States, (2) may only be used to pay the principal and interest on obligations of the United States held by the public or the Social Security trust funds, and (3) are exempt from the debt limit. 
 
Once Congress is notified that the debt limit will be reached, the President may issue a message to Congress containing a list of budget authority proposed to be rescinded. The 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 provided. Congress must consider the message using specified expedited legislative procedures. 
 
If the debt limit notice has been provided to Congress, the President may also order the sale of specified mortgage-related assets owned or held by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Association (Freddie Mac), and the Federal Reserve. The proceeds from the sales must be deposited in the Treasury. 


Legislative actions:
action_date: 2019-11-14
text: 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 subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2019-11-14
text: 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 subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2019-11-14
text: 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 subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2019-11-14
text: 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 subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2019-11-14
text: Introduced in House
action_date: 2019-11-14
text: Introduced in House