H.R. 182
119th CONGRESS 1st Session
To ensure the payment of interest and principal of the debt of the United States.
IN THE HOUSE OF REPRESENTATIVES · January 3, 2025 · Sponsor: Mr. McClintock · Committee: Committee on Ways and Means
Table of contents
SEC. 1. Short title
- This Act may be cited as the Default Prevention Act.
SEC. 2. Payment of obligations
- (a) In general
- At any time that the debt of the United States Government subject to limitation under section 3101 of title 31, United States Code, has reached the limitation imposed under such section,
the Secretaryof the Treasury (hereafter in this section referred to as ) shall—- pay Tier I obligations as such obligations become due,
- issue such obligations under of title 31, United States Code, as— chapter 31
- are necessary to make the payments described in paragraph (1), or
- are to be held exclusively by a trust fund referred to in subsection (b)(1)(A),
- pay Tier III obligations only to the extent that the Secretary can still pay all Tier II obligations as such obligations become due,
- pay Tier IV obligations only to the extent that the Secretary can still pay all Tier II and Tier III obligations as such obligations become due,
- pay Tier V obligations only to the extent that the Secretary can still pay all Tier II, Tier III, and Tier IV obligations as such obligations become due, and
- submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a weekly written report containing the information described in subsection (d).
- At any time that the debt of the United States Government subject to limitation under section 3101 of title 31, United States Code, has reached the limitation imposed under such section,
- (b) Definitions
- For purposes of this section—
- The term means payments necessary to provide any of the following:
Tier I obligations - The term means payments necessary to provide any of the following:
Tier II obligations - The term means any obligation of the United States which is not a Tier I, Tier II, Tier IV, or Tier V obligation.
Tier III obligations - The term means any payment which constitutes any of the following:
Tier IV obligations - The term means compensation of any Member of Congress (as that term is defined in section 2106 of title 5, United States Code).
Tier V obligations
- The term means payments necessary to provide any of the following:
- For purposes of this section—
- (c) Coordination with public debt limit
- Obligations issued under subsection (a)(2) shall not be taken into account as subject to the limitation imposed under section 3101(b) of title 31, United States Code. The preceding sentence shall not apply with respect to any obligation after the first date (after the issuance of such obligation) on which any modification or suspension of such limitation takes effect.
- (d) Weekly reports
- The written report referred to in subsection (a)(6) shall include, with respect to the period covered by such report—
- the amount of Tier I obligations paid under subsection (a)(1) during such period,
- the amount of obligations issued under subsection (a)(2) during such period, and
- the amount of Tier II obligations, Tier III obligations, Tier IV obligations, and Tier V obligations which were paid during such period (stated separately for each tier) and the aggregate amount of such obligations which were due and unpaid as of the close of such period (stated separately for each tier).
- The written report referred to in subsection (a)(6) shall include, with respect to the period covered by such report—
- (e) No inference with respect to existing authority to prioritize payments
- During any period with respect to which this section does not apply, nothing in this section shall be interpreted to restrict the authority of the Secretary to prioritize the payment of certain obligations over other obligations.