Default Prevention Act

Summary

Default Prevention Act This bill requires the following obligations to be granted priority over all other U.S. obligations if the public debt reaches the statutory limit: principal and interest on debt held by the public; compensation, allowances, and benefits for members of the Armed Forces on active duty; Social Security benefits; Medicare benefits; and obligations under any program administered by the Department of Veterans Affairs. If Congress is notified, the Department of the Treasury may issue additional debt in excess of the debt limit for the priority obligations. Treasury may issue the additional debt during the 30-day period beginning on the date on which the United States is unable to use revenues or extraordinary measures to fully pay the priority obligations at the time they are due. (The term extraordinary measures refers to a series of actions that Treasury may implement to allow the United States to borrow additional funds without exceeding the debt limit. The measures generally include suspensions or delays of debt sales and suspensions or redemptions of investments in certain government funds.)

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

No timeline events have been ingested for this record yet.

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

3 official files

• Introduced in Senate (text)

  Introduced in Senate · EN · 28 January 2021

  ViewDownloadOpen at official source

• Introduced in Senate (PDF)

  Introduced in Senate · EN · 28 January 2021

  ViewDownloadOpen at official source

• Introduced in Senate

  summary · EN · 28 January 2021

  Open at official source

Sponsors

No sponsors or actors listed by the source.

Related records

No cross-record relationships stored yet.