What does Preamble of Default Prevention Act do?

This bill is formally titled 'To ensure the payment of interest and principal of the debt of the United States.'

What does SHORT TITLE. of Default Prevention Act do?

This bill is formally titled the Default Prevention Act

What does PAYMENT OF OBLIGATIONS. of Default Prevention Act do?

This section outlines a process for the Secretary of the Treasury to manage payments when the national debt reaches its legal limit. Tier I obligations, including debt payments and Medicare payments, are to be paid first. Tier II obligations (Department of Defense and Veterans Affairs) are paid second, followed by Tier III, Tier IV, and Tier V obligations, contingent on the ability to pay prior tiers. The Secretary must issue obligations to fund payments, with certain obligations exempt from the public debt limit. The Secretary is required to submit weekly reports to Congress detailing the amounts of each tier of obligations paid and due. Tier I obligations include payments of principal and interest on debt held by the public, Federal trust funds, and payments under the Medicare program.

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Default Prevention Act

Last updated: 1/3/2025 · Introduced: 1/3/2025

Author: Tom McClintock (R-CA)

TL;DR (AI)

The Secretary of the Treasury is required to prioritize payments when the national debt reaches its limit, with debt payments and Medicare payments being paid first.
The Secretary must issue obligations to fund payments, with certain obligations exempt from the public debt limit, to ensure the payment of principal and interest on debt held by the public.
The Secretary is required to submit weekly reports to Congress detailing the amounts of each tier of obligations paid and due, including payments for the Department of Defense, Veterans Affairs, and other obligations.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

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