Us Congress 2023-2024 Regular Session

Us Congress Senate Bill SB1395

Caption

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

Impact

If enacted, this bill would effectively pause any limitations set by current laws on the amount of debt that the U.S. Treasury can incur. Consequently, the government would be able to issue bonds or borrow funds necessary to cover its existing debts and obligations, potentially preventing a government shutdown and ensuring continued funding for public services and programs. However, the suspension does pave the way for concerns regarding long-term fiscal responsibility and how the accumulated debts will be addressed once the suspension period ends.

Summary

SB1395 proposes a temporary suspension of the federal debt limit until December 31, 2024. This legislative move is intended to provide the government with increased flexibility in managing its obligations without the immediate pressure of needing to raise the debt ceiling. The rationale behind suspending the debt limit is to ensure that the federal government can meet its financial commitments, particularly in the wake of economic challenges and uncertainties.

Contention

Critics of SB1395 may argue that indefinite suspensions of the debt limit can lead to a lax approach towards fiscal discipline. Lawmakers wary of increasing national debt may voice concerns over future economic ramifications, including inflationary pressures and increased interest rates. Supporters, however, may contend that allowing a temporary suspension is crucial to maintaining governmental operations and avoiding default, emphasizing the need for immediate support without the constraints of a formal debt ceiling.

Companion Bills

US HB3746

Related Administrative Pay-As-You-Go Act of 2023

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 SB1015

A bill to extend the National Flood Insurance Program through December 31, 2026.

US SR59

An original resolution authorizing expenditures by committees of the Senate for the periods March 1, 2023, through September 30, 2023, October 1, 2023, through September 30, 2024, and October 1, 2024, through February 28, 2025.

US SB71

Extending Limits of United States Customs Waters Act of 2023 This bill extends the customs waters territory of the United States. Under current law, customs waters means waters within four leagues of the coast of the United States. This bill revises the definition to include (1) the territorial sea of the United States to the limits permitted by international law in accordance with Presidential Proclamation 5928, dated December 27, 1988, that extended such limits to 12 nautical miles from the baselines of the United States; and (2) the contiguous zone of the United States to the limits permitted by international law in accordance with Presidential Proclamation 7219, dated September 2, 1999, that extended such limits to 24 nautical miles from the baselines of the United States.

US HB3746

Administrative Pay-As-You-Go Act of 2023

US HB2822

To extend the National Flood Insurance Program through December 31, 2026.

US HB3953

Debt Ceiling Reform Act

US HB3750

To provide a 1-week extension of the public debt limit.

US SB1848

Debt-Free College Act of 2023

Similar Bills

No similar bills found.