Default Prevention Act
Sponsored By: Representative McClintock
Introduced
Summary
Prioritizing federal payments when the debt ceiling is reached. This bill would set a five-tier order the Treasury must follow when the public debt reaches the statutory limit and allow certain Treasury-issued obligations to fund top-tier payments.
Show full summary
- Seniors, Medicare recipients, and creditors: Social Security and Medicare payments plus principal and interest on publicly held debt and federal trust funds are in Tier I and would be paid first.
- Military and veterans: Department of Defense obligations and Veterans Affairs benefits are Tier II and would be paid next. Other uncategorized federal obligations would be Tier III and paid after Tier II.
- Federal staff and lawmakers, plus Treasury rules and reporting: Executive branch compensation and travel are Tier IV and Members of Congress pay is Tier V, both paid only if higher tiers can be met. The Treasury could issue chapter 31 obligations that would not count toward the debt limit to make Tier I payments and would submit weekly written reports to the House Ways and Means Committee and the Senate Finance Committee.
Your PRIA Score
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Who gets paid first at the debt limit
If the federal debt limit is reached, Treasury would pay bills in five tiers. Top priority would be interest and principal on U.S. debt, Social Security and Medicare trust funds, and Medicare payments. Defense bills and VA benefits would be next; other bills would be paid only if higher tiers can still be paid on time. Some executive‑branch pay and travel, and pay for Members of Congress, would be last. Treasury could issue special securities to fund top‑tier payments or hold in the trust funds; these would not count toward the cap during the breach, and new ones would count again after Congress changes or suspends the cap. Treasury would send weekly reports to Congress on what was paid and what was overdue in each tier.
Sponsors & CoSponsors
Sponsor
McClintock
CA • R
Cosponsors
Grothman
WI • R
Sponsored 1/9/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.govTake It Personal
Get Your Personalized Policy View
Start a Free Government Policy Watch to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in