To require the Secretary of the Treasury to issue a report containing information on extraordinary measures available when the debt of the United States Government approaches the statutory limit, and for other purposes.
Impact
The bill is designed to provide a clearer view of the financial health of the U.S. government and the options available to the Treasury as it nears its debt limit. By requiring detailed projections, the legislation intends to create a framework that allows Congress to better understand the implications of reaching the debt ceiling and the potential risks to financial stability that may arise. This proactive approach could aid in preventing sudden financial crises by ensuring that all stakeholders are adequately informed of the government's fiscal situation.
Summary
House Bill 4651 aims to mandate a report from the Secretary of the Treasury regarding extraordinary measures that can be utilized when the United States government approaches its statutory debt limit. This legislation seeks to ensure legislative oversight and transparency in the government's financial operations, especially during times of fiscal uncertainty. Specifically, the Secretary is required to provide a list of available extraordinary measures, including their projected dollar amounts, and projections of key operational deadlines concerning the debt limit.
Contention
While the bill appears to promote transparency and responsibility, there may be contention surrounding the measures it calls for, particularly regarding the Secretary's attestation of whether approaching the debt limit poses an emerging threat to financial stability. Critics may argue that the reports could either understate or overstate risks depending on economic conditions, and there might be political implications if the findings reflect poorly on current government fiscal policy. Additionally, the report's reliance on projections with a 95 percent confidence interval could lead to debates on the accuracy and reliability of the Treasury's forecasts.
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.
To provide for the renewed availability of funds to construct the border wall upon the deployment of the National Guard to the southern land border of the United States, and for other purposes.
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.
To provide for a limitation on availability of funds for Department of Treasury, Committee on Foreign Investment in the United States for fiscal year 2024.