II 119th CONGRESS 1st Session S. 2405 IN THE SENATE OF THE UNITED STATES July 23, 2025 Mr. Merkley (for himself, Mr. Durbin , and Mr. Kaine ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To provide a process for ensuring the United States does not default on its obligations.

1. Short title This Act may be cited as the Debt Ceiling Reform Act . 2. Suspension of the debt ceiling (a) In general (1) Amendments Subchapter I of chapter 31 of subtitle III of title 31, United States Code, is amended— (A) in section 3101(b), by inserting or 3101B after section 3101A ; and (B) by inserting after section 3101A the following: 3101B. Suspension of the debt ceiling (a) Definition In this section, the term joint resolution means only a joint resolution— (1) that is introduced during the period— (A) beginning on the date a certification described in subsection (b)(1) is received by Congress; and (B) ending on the date that is 45 calendar days after the date described in subparagraph (A); (2) which does not have a preamble; (3) the title of which is only as follows: Joint resolution relating to the disapproval of the Secretary of the Treasury’s exercise of authority to suspend the debt limit, as submitted under section 3101B of title 31, United States Code, on ______ (with the blank containing the date of such submission); and (4) the matter after the resolving clause of which is only as follows: That Congress disapproves of the Secretary of the Treasury’s exercise of authority to suspend the debt limit, as exercised pursuant to the certification submitted under section 3101B(b)(1) of title 31, United States Code, on ______. (with the blank containing the date of such submission). (b) Submissions to Congress (1) In general Not earlier than 60 days, and not later than 46 days, before last day of a suspension of the limit under section 3101(b) under this section, or any other provision of law, if the Secretary of the Treasury determines that further borrowing will be necessary to meet existing commitments after the end of such suspension, the Secretary of the Treasury shall submit to Congress a written certification specifying the end of the period during which such limit should be suspended, which shall be not later than 2 years after the otherwise applicable end of the period of the suspension of the limit under section 3101(b). (2) Effect of failure to enact disapproval (A) In general If a joint resolution is not enacted with respect to a certification under paragraph (1) during the 45-calendar-day period beginning on the date on which Congress receives the certification, section 3101(b) shall not apply for the period— (i) beginning on the date that is 46 calendar days after the date on which Congress receives the certification; and (ii) ending on the date specified by the Secretary of the Treasury in the certification. (B) Special rule relating to obligations issued during extension period If a suspension of the limit under section 3101(b) takes effect under subparagraph (A) of this paragraph, effective on the day after the date specified by the Secretary of the Treasury in the applicable certification, the limitation in effect under section 3101(b) shall be increased to the extent that— (i) the face amount 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) outstanding on the day after the date specified by the Secretary of the Treasury in the certification; exceeds (ii) the face amount of such obligations outstanding on the day after the most recent day during which the limit under section 3101(b) was not suspended under this section, or any other provision of law. (C) Restoring congressional authority over the national debt (i) Extension limited to necessary obligations An obligation shall not be taken into account under subparagraph (B)(i) unless the issuance of such obligation was necessary to fund a commitment incurred pursuant to law by the Federal Government that required payment before the day after the date specified by the Secretary of the Treasury in the certification. (ii) Prohibition on creation of cash reserve during extension period The Secretary of the Treasury shall not issue obligations during the period specified in subparagraph (A) for the purpose of increasing the cash balance above normal operating balances in anticipation of the expiration of such period. (3) Effect of enactment of disapproval If a joint resolution is enacted with respect to a certification under paragraph (1) during the 45-calendar-day period beginning on the date on which Congress receives the certification, the suspension of the limit under section 3101(b) described in such paragraph (1) shall end as otherwise provided by law. (c) Expedited consideration in House of Representatives (1) Reporting and discharge Any committee of the House of Representatives to which a joint resolution is referred shall report it to the House of Representatives without amendment not later than 5 calendar days after the date of introduction of the joint resolution. If a committee fails to report the joint resolution within that period, the committee shall be discharged from further consideration of the joint resolution and the joint resolution shall be referred to the appropriate calendar. (2) Proceeding to consideration After each committee authorized to consider a joint resolution reports it to the House of Representatives or has been discharged from its consideration, it shall be in order, not later than the sixth day after introduction of the joint resolution, to move to proceed to consider the joint resolution in the House of Representatives. All points of order against the motion are waived. Such a motion shall not be in order after the House of Representatives has disposed of a motion to proceed on a joint resolution addressing a particular submission. The previous question shall be considered as ordered on the motion to its adoption without intervening motion. The motion shall not be debatable. A motion to reconsider the vote by which the motion is disposed of shall not be in order. (3) Consideration The joint resolution shall be considered as read. All points of order against the joint resolution and against its consideration are waived. The previous question shall be considered as ordered on the joint resolution to its passage without intervening motion except 2 hours of debate equally divided and controlled by the proponent and an opponent. An amendment to the joint resolution or a motion to reconsider the vote on passage of the joint resolution shall not be in order. (d) Expedited procedure in Senate (1) Placement on calendar Upon introduction in the Senate, a joint resolution shall be immediately placed on the calendar. (2) Floor consideration (A) In general Notwithstanding rule XXII of the Standing Rules of the Senate, it is in order at any time during the period beginning on the day after the date on which Congress receives a certification under subsection (b)(1) and ending on the date that is 45 calendar days after the date on which the applicable certification described in subsection (b)(1) is received by Congress (even though a previous motion to the same effect has been disagreed to) to move to proceed to the consideration of the joint resolution, and all points of order against the joint resolution (and against consideration of the joint resolution) are waived. The motion to proceed is not debatable. The motion is not subject to a motion to postpone. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the resolution is agreed to, the joint resolution shall remain the unfinished business until disposed of. (B) Consideration Consideration of the joint resolution, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 10 hours, which shall be divided equally between the majority and minority leaders or their designees. A motion further to limit debate is in order and not debatable. An amendment to, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the joint resolution is not in order. (C) Vote on passage If the Senate has voted to proceed to a joint resolution, the vote on passage of the joint resolution shall occur immediately following the conclusion of consideration of the joint resolution, and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the Senate. (D) Rulings of the chair on procedure Appeals from the decisions of the Chair relating to the application of the rules of the Senate to the procedure relating to a joint resolution shall be decided without debate. (e) Coordination with action by other house (1) In general If, before passing the joint resolution, one House receives from the other a joint resolution— (A) the joint resolution of the other House shall not be referred to a committee; and (B) the procedure in the receiving House shall be the same as if no joint resolution had been received from the other House, except that the vote on final passage shall be on the joint resolution of the other House. (2) Treatment of joint resolution of other house If the Senate fails to introduce or consider a joint resolution under this section, the joint resolution of the House shall be entitled to expedited floor procedures under this section. (3) Treatment of companion measures If, following passage of the joint resolution in the Senate, the Senate receives the companion measure from the House of Representatives, the companion measure shall not be debatable. (4) Consideration after passage (A) In general If Congress passes a joint resolution, the period beginning on the date the President is presented with the joint resolution and ending on the date the President signs, allows to become law without the signature of the President, or vetoes and returns the joint resolution (but excluding days when either House is not in session) shall be disregarded in computing the calendar day period described in paragraphs (2) and (3) of subsection (b). (B) Debate Debate on a veto message in the Senate under this section shall be 1 hour equally divided between the majority and minority leaders or their designees. (5) Veto override If within the calendar day period described in paragraphs (2) and (3) of subsection (b), Congress overrides a veto of a joint resolution, the suspension of the limit under section 3101(b) described in paragraph (1) of such subsection shall end as otherwise provided by law. (f) Rules of House of Representatives and Senate Subsections (a), (c), (d), and (e) (except for paragraphs (4)(A) and (5) of such subsection) are enacted by Congress— (1) as an exercise of the rulemaking power of the Senate and House of Representatives, respectively, and as such it is deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of a joint resolution, and it supersedes other rules only to the extent that it is inconsistent with such rules; and (2) with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner, and to the same extent as in the case of any other rule of that House. . (2) Transitional rule If, on the date of enactment of this Act, the limit under section 3101(b) of title 31, United States Code, is not suspended, or the period of the suspension of such section ends less than 46 days after the date of enactment of this Act, until the date on which a suspension of such section next takes effect, subsection (b) of section 3101B of title 31, United States Code, shall be applied by substituting for paragraph (1) of such subsection the following: (1) In general Not later than 10 days after the date of enactment of this section, if the Secretary of the Treasury determines that further borrowing will be necessary to meet existing commitments after the date of enactment of this section, the Secretary of the Treasury shall submit to Congress a written certification specifying the end of the period during which the limit under section 3101(b) should be suspended, which shall be— (A) not later than 2 years after the otherwise applicable end of the period of the suspension of the limit under section 3101(b) in effect on the date of enactment of this section; or (B) if the limit under such section is not suspended on the date of enactment of this section, not later than 2 years after the date of enactment of this subsection. . (3) Conforming amendment The table of sections for chapter 31 of title 31, United States Code, is amended by inserting after the item relating to section 3101A the following: 3101B. Suspension of the debt ceiling. . (b) Additional information on debt Section 1105(a)(10) of title 31, United States Code, is amended by adding at the end the following: Such information shall include, as a percentage of the gross domestic product of the United States, an estimate of the debt held by the public and the debt held by the public net of financial assets. .