Us Congress 2023-2024 Regular Session

Us Congress House Bill HB187

Introduced
1/9/23  
Refer
1/9/23  

Caption

Default Prevention Act This bill requires the Department of the Treasury to continue borrowing to pay the principal and interest on obligations held by the public or the Social Security trust funds if the federal debt limit is reached. The bill also (1) exempts any obligations issued under this bill from the debt limit if the obligations would otherwise cause the limit to be exceeded, and (2) prohibits the obligations from being used to compensate Members of Congress.

Impact

If enacted, the Default Prevention Act would significantly affect federal financial practices by ensuring that certain obligations take precedence over others when the debt limit is reached. The bill specifies tiers of obligations ranging from crucial payments, such as those related to Social Security and Medicare, to other government expenses. By prioritizing these payments, the bill aims to stabilize fiscal operations and protect the trust funds from potential financial disruptions, thus providing a safety net for essential government programs.

Summary

House Bill 187, known as the Default Prevention Act, addresses the contingency of the federal debt limit being reached. The legislation requires the Department of the Treasury to continue borrowing necessary funds to cover interest and principal payments on public obligations and obligations held in trust funds, such as Social Security, regardless of whether the debt ceiling is hit. The bill emphasizes maintaining the government's capacity to honor its financial commitments to prevent a credit default, which could result in severe economic consequences.

Sentiment

The sentiment around HB 187 appears to be cautious but generally supportive among those who see the importance of avoiding a government default. Proponents argue that the bill is a necessary step to uphold financial integrity and protect essential services. However, some critics express concerns about the implications of increasing federal borrowing and its potential impact on the national debt. The debate indicates a recognition of the need for a balanced approach to fiscal responsibility and government funding.

Contention

Notable points of contention surrounding the bill include the discussions about the broader implications of escalating the federal debt limit. Some legislators are concerned that continually raising the borrowing capacity might lead to fiscal irresponsibility, while others argue that ensuring payments to retirees and essential services is paramount for economic stability. The tension reflects a fundamental disagreement over the strategies to manage national debt and financial priorities, particularly in a rapidly changing economic landscape.

Companion Bills

No companion bills found.

Previously Filed As

US SB82

Full Faith and Credit Act This bill requires the Department of the Treasury to prioritize certain obligations if the federal debt limit is reached and provides for a limited increase in the debt limit to fund these priorities. If the federal government reaches the debt limit, the following obligations must be given equal priority over all other federal obligations: the principal and interest on the debt held by the public; Social Security benefits; pay and allowances for members of the Armed Forces on active duty and members of the U.S. Coast Guard; compensation, pensions, and payments for medical services provided by the Department of Veterans Affairs, and the Medicare programs. If the debt limit has been reached and incoming revenue will be insufficient to pay the priority obligations over an upcoming two-week period, the bill requires (1) Treasury to notify Congress of the expected revenue shortfall for the two-week period, and (2) the debt limit to be increased by the amount of the expected shortfall. If the incoming revenue exceeds the expected shortfall, the excess revenue must be held in reserve and applied to the following two-week period.

US HB415

End the Threat of Default Act This bill repeals the statutory debt limit, which limits the amount of money that the federal government may borrow.

US HB402

Debt Explanation Before Taxwriters Act or the DEBT Act This bill requires the Secretary of the Treasury to appear before the House Ways and Means Committee and the Senate Finance Committee before the federal debt limit is reached or extraordinary measures are taken to prevent the United States from defaulting on its obligations. The term extraordinary measures generally refers to a series of actions that the Department of the 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. The bill requires the Secretary of the Treasury to appear before the committees to provide a detailed explanation of (1) the extraordinary measures that Treasury will take and the administrative costs of taking the measures, and (2) any reversal of such measures and any other changes in the funding of federal government obligations.

US SB1395

A bill to temporarily suspend the debt limit through December 31, 2024.

US HB1221

Social Security and Medicare Lock-Box Act This bill establishes (1) in the Federal Old-Age and Survivors Insurance Trust Fund, a Social Security Surplus Protection Account; and (2) in the Federal Hospital Insurance Trust Fund, a Medicare Surplus Protection Account. The Managing Trustee of each trust fund (in both cases, the Secretary of the Treasury) (1) must transfer the annual surplus of the trust fund to its respective account; and (2) may not invest the balance in the account until a law takes effect that authorizes, for amounts in the trust fund, an investment vehicle other than U.S. obligations. The bill establishes in the executive branch a commission to study the most effective vehicles for investment of the trust funds, other than investments in the form of U.S. obligations.

US HB94

American Sovereignty and Species Protection Act This bill limits the protection of endangered or threatened species to species that are native to the United States. In addition, the bill prohibits certain funding for endangered or threatened species from being used to acquire lands, waters, or other interests in foreign countries.

US SB58

Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act This bill prohibits Members of Congress (or their spouses) from holding or trading certain investments (e.g., individual stocks and related financial instruments other than diversified investment funds or U.S. Treasury securities). The prohibition does not apply to assets held in a qualified blind trust or to sales by a Member to come into compliance with the bill's requirements. Specifically, the bill allows for sales by current Members during the 180 days following the bill's enactment and for sales by future Members during the 180 days following the commencement of their service. Any profit made in violation of the prohibition must be disgorged to the Treasury and may subject the Member to a civil fine. Additionally, a loss stemming from a prohibited holding or transaction may not be used as an income tax deduction. Each Member must submit an annual certification of compliance, and the Government Accountability Office must audit Members' compliance with the bill's provisions.

US SB230

Unborn Child Support Act This bill requires states to apply child support obligations to the time period during pregnancy. This requirement is applicable retroactively based on a court order at the request of the pregnant parent and a determination by a physician of the month during which the child was conceived. Existing state requirements are applicable to these obligations, such as proof of parenthood.

US HB324

Stop Subsidizing Multimillion Dollar Corporate Bonuses Act This bill extends the $1 million limit on the deductibility of executive compensation to all employees of publicly traded corporations.

US HB362

Budgetary Accuracy in Scoring Interest Costs Act of 2023 or the BASIC Act This bill requires cost estimates prepared by the Congressional Budget Office or the Joint Committee on Taxation to include the costs of servicing the public debt.

Similar Bills

No similar bills found.