Source: United States Senator Kevin Cramer (R-ND)
BISMARCK – U.S. Senator Kevin Cramer (R-ND), member of the Senate Budget Committee, cosponsored the Full Faith and Credit Act. The bill, led by Senator Rick Scott (R-FL) would direct the U.S. Department of the Treasury (DOT), in the event of default, to fund certain programs based on the populations they serve should DOT refuse to exercise its existing authority to do so.
“It’s past time the federal government enact responsible budget reforms,” said Senator Cramer. “Partisan Democrats added trillions to our national debt and the bill is due. If they refuse to negotiate over the mess they created, Washington will have to cut back, in which case, our bill would direct the Treasury Department to prioritize critical funding for seniors, veterans, and service members.”
Senators Cramer and Scott are joined by Senators Mike Braun (R-IN), Cynthia Lummis (R-WY), Katie Britt (R-AL), Ron Johnson (R-WI), Mike Lee (R-UT), Jim Risch (R-ID), Marsha Blackburn (R-TN), and Ted Budd (R-NC).
Click here for bill text.
Background:
The Full Faith and Credit Act would:
- Require the following to take priority over all other federally incurred obligations in the event that the federal debt reaches the debt ceiling:
- The Department of the Treasury to pay the principal and interest on debt held by the public;
- Social Security payments toward monthly Old Age, Survivors, and Disability Insurance benefits under title II of the Social Security Act;
- Pay and allowances for members of the Armed Forces on active duty and the United States Coast Guard;
- Payment of compensation and pensions and medical services provided by the United States Department of Veterans Affairs; and
- Medicare programs.
- Require the Secretary of the Treasury, if the Secretary determines that incoming revenue will not be sufficient to finance the priorities described above over the following two weeks, to:
- Notify Congress of the expected revenue shortfall; and
- Raise the debt limit by the amount necessary to cover the difference between incoming revenue and the revenue needed to finance such priorities on a two-week basis.
- Prohibit such a debt limit increase from exceeding the difference between expected outlays for the listed priorities and expected revenue.
The bill is endorsed by Club for Growth, Americans for Prosperity, and FreedomWorks.