Debt Ceiling Reform Act

House Votes

This bill sets up a safety valve to help the U.S. avoid default. It lets the Treasury Department temporarily pause the debt limit when needed, as long as Congress doesn’t pass a formal “disapproval” within 45 days. Treasury must send Congress a written notice that says how long the pause should last, and that time can be no later than two years after the prior pause ends . If Congress does not enact a disapproval in time, the pause takes effect for the period Treasury specified.

When the pause ends, the debt limit automatically adjusts to cover the necessary borrowing that happened during the pause to pay legal bills already owed. Treasury cannot borrow extra just to build up cash beyond normal needs during this time. If Congress does enact a disapproval within 45 days, the pause would end under existing law .

Key points

• Who is affected: The Treasury Department’s borrowing and Congress’s role in setting the debt limit.
• What changes: A clear “notify and pause unless Congress disapproves” process, a 45-day review window, limits on borrowing just to pad cash, and an automatic limit adjustment after the pause to match needed borrowing for legal obligations.
• When: After Treasury sends its certification; Congress has 45 days to act; a pause can last up to two years after the prior suspension’s end .