Default Prevention Act

Bill: 115-hr-422
Sponsor: full_name: Rep. McClintock, Tom [R-CA-4]
Introduced: 2017-01-10
Policy area: Economics and Public Finance
Subjects: Budget deficits and national debt

Congressional oversight

Government employee pay, benefits, personnel management

Government trust funds

Interest, dividends, interest rates

Members of Congress

Securities

Social security and elderly assistance
Latest action: action_date: 2017-01-10
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2017-01-10
action_desc: Introduced in House
text: <p><b>Default Prevention Act </b></p> <p>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.</p> <p> 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. </p> <p>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. </p>

tv_txt: I 115th CONGRESS 1st Session H. R. 422 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.

1. Short title This Act may be cited as the Default Prevention Act . 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.