Debt Ceiling Reform Act

This bill sets up a simple “no default” backstop. When the Treasury Secretary sees that more borrowing is needed to pay the country’s existing bills, they must send Congress a written notice before the current pause on the debt limit ends. If Congress does nothing for 45 days after getting that notice, the debt limit is paused again until the date the Secretary listed, so the government can keep paying what it already owes. If Congress passes a disapproval measure in time, the pause ends as otherwise provided by law. After a pause ends, the limit is adjusted to cover the obligations issued during the pause that were needed to meet legal commitments. The Secretary can’t use this period to build up extra cash beyond normal needs.

The bill also sets quick, set-in-advance rules for how the House and Senate handle any disapproval vote, with limited debate and fast scheduling, so Congress can act promptly if it chooses.

Key points

• Who is affected: The federal government and anyone who relies on timely federal payments, since the goal is to avoid missed payments on existing commitments.
• What changes: If Congress doesn’t pass a disapproval within 45 days of the Treasury’s certification, the debt limit is automatically paused until the date the Secretary specifies (up to two years after the prior pause ends). Afterward, the limit is raised to reflect necessary obligations issued during the pause.
• When it happens: The Treasury’s notice must be sent 60 to 46 days before the current suspension ends. Congress then has 45 days to act.