I 113th CONGRESS 1st Session H. R. 1970 IN THE HOUSE OF REPRESENTATIVES May 14, 2013 Mr. Gohmert introduced the following bill; which was referred to the Committee on Ways and Means , and in addition to the Committee on Armed Services , 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 A BILL To direct the Secretary of the Treasury to ensure that social security benefits are paid, to prioritize payments when the United States is not able to issue new obligations due to the statutory debt limit, and to address a lapse in appropriations to fund the Armed Forces.

1. Timely payment of Social Security benefits if statutory debt limit is reached (a) In general Section 1145 of the Social Security Act ( 42 U.S.C. 1320b–15 ) is amended— (1) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively; and (2) by inserting after subsection (a) the following new subsection: (b) Timely payment of benefits if statutory debt limit is reached (1) Disinvestment of fund to make current benefit payments For the purpose of making payment of cash benefits or administrative expenses during any debt limit default period, public debt obligations held by the applicable Federal fund shall be sold or redeemed in an amount not to exceed the sum of— (A) the face amount of obligations held by such fund which mature during such month; plus (B) the amount necessary only for the purpose of making payment of such benefits or administrative expenses and only to the extent cash assets of the applicable Federal fund are not available during such period for making payment of such benefits or administrative expenses. (2) Issuance of corresponding debt For purposes of undertaking the sale or redemption of public debt obligations held by the applicable Federal fund pursuant to paragraph (1), the Secretary of the Treasury shall issue corresponding public debt obligations to the public in order to obtain the amounts necessary for payment of benefits or administrative expenses from the applicable Federal fund, notwithstanding the public debt limit. (3) Definitions For purposes of this subsection— (A) Debt limit default period The term debt limit default period means a period for which cash benefits or administrative expenses would not otherwise be payable from the applicable Federal fund by reason of an inability to issue further public debt obligations because of the public debt limit. (B) Applicable Federal fund The term applicable Federal fund means a Federal fund specified in paragraph (1) or (2) of subsection (d). . (b) Conforming amendments (1) Section 1145 of the Social Security Act, as amended by subsection (a), is amended— (A) by redesignating subsection (d) as subsection (e), and (B) by inserting after subsection (c) the following new subsection: (d) Public debt limit For purposes of this section, the term public debt limit means the limitation established under section 3101 of title 31, United States Code, as increased under section 3101A of such title. . (2) Section 1145(c) of the Social Security Act, as amended by subsection (a), is amended by striking established under section 3101 of title 31, United States Code . 2. Prioritization of payments in event that statutory debt limit is reached Section 3101 of title 31, United States Code, is amended by adding at the end the following new subsection: (d) In the event that the Secretary of the Treasury is not able to issue obligations to make all payments authorized by law due to the limitation under subsection (b) (as increased under section 3101A), the Secretary shall give equal priority to the following: payments of principal and interest on public debt; payments of amounts that the Secretary of Defense (and the Secretary of Homeland Security in the case of the Coast Guard) determines to be necessary to continue pay and allowances (without interruption) to the Army, Navy, Air Force, Marine Corps, and Coast Guard, including reserve components thereof, who perform active service; payments determined by the President (and reported to the Congress) to be necessary to continue United States priorities of its vital national security interests; and payments for items and services under title XVIII of the Social Security Act (relating to Medicare). . 3. Continuance of military pay and allowances during periods of lapsed appropriations (a) Continuance of pay Chapter 19 of title 37, United States Code, is amended by adding at the end the following new section: 1015. Continuance of pay and allowances during periods of lapsed appropriations (a) Definitions In this section: (1) The term military personnel accounts means the military personnel, reserve personnel, and National Guard personnel accounts of the Department of Defense, generally title I of an annual Department of Defense appropriations Act, and the corresponding accounts for the Department of Homeland Security used to provide pay and allowances for members of the Coast Guard. (2) The term pay and allowances means basic pay, bonuses and special pay, allowances and any other forms of compensation available for members of the armed forces under this title or otherwise paid from the military personnel accounts. (3) The term period of lapsed appropriations , when used with respect to members of the armed forces, means any period during which appropriations are not available due to the absence of the timely enactment of any Act or joint resolution (including any Act or joint resolution making continuing appropriations) appropriating funds for the payment of the pay and allowances of members of the armed forces. (b) Appropriation of funds To continue payment of pay and allowances For any period of lapsed appropriations, there are appropriated, out of any moneys in the Treasury not otherwise appropriated, to the Secretary of Defense (and the Secretary of Homeland Security in the case of the Coast Guard) to allow the Secretary of Defense (and the Secretary of Homeland Security in the case of the Coast Guard) to continue to provide pay and allowances (without interruption) to members of the United States armed forces. (c) Limitation on amounts paid This section only authorizes the expenditure of funds during a period of lapsed appropriations for the pay and allowances of a member of the armed forces at a rate that is equal to the rate in effect for that member immediately before the start of the period of lapsed appropriations. The rate for a member may neither exceed the rate in effect immediately before the start of the period of lapsed appropriations nor be less than that rate, unless reduced by disciplinary action under the Uniform Code of Military Justice. (d) Relation to other pay authorities This section shall not be construed to affect the entitlement of a member of the armed forces to an amount of pay and allowances that exceeds the amount of pay and allowances authorized to be paid under this section and to which the member becomes entitled under other applicable provisions of law. (e) Effect of end of period of lapsed appropriations Expenditures made for any fiscal year pursuant to this section shall be charged to the applicable appropriation, fund, or authorization whenever the regular appropriation bill (or other bill or joint resolution making continuing appropriations through the end of the fiscal year) becomes law. . (b) Clerical amendment The table of sections at the beginning of such chapter is amended by adding at the end the following new item: 1015. Continuance of pay and allowances during periods of lapsed appropriations. .