Bill > HR182

This bill, known as the "Default Prevention Act," establishes a detailed framework for managing U.S. government payments when the national debt reaches its legal limit. Under this legislation, the Treasury Secretary would prioritize payments in a specific order of tiers: Tier I obligations (including principal and interest on public debt, payments to major trust funds, and Medicare) would be paid first and guaranteed. Tier II obligations (such as Department of Defense and Veterans Affairs benefits) would be paid next if funds allow. Tier III obligations would be paid only after Tier I and II are covered, while Tier IV obligations (like certain federal employee travel expenses and compensation) would be paid only if Tier I, II, and III obligations are fully met. Tier V obligations, which include Congressional member compensation, would be the lowest priority. The bill requires the Treasury Secretary to submit weekly reports to Congress detailing the payments made across these tiers and would allow the issuance of additional debt specifically to cover Tier I obligations without counting against the debt ceiling. This legislation aims to prevent a potential government default by creating a clear hierarchy of payment priorities when the government reaches its borrowing limit, ensuring that critical financial obligations like debt service and essential social programs are protected first.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/182/all-info