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119-s-2405119th CongressWALLET

Debt Ceiling Reform Act

Sponsored By: Senator Merkley, Jeff [D-OR]

Introduced

Summary

Creates a fast-track congressional disapproval process for suspending the federal debt limit. The bill would set a formal Treasury certification system to pause the debt ceiling and give Congress a short, structured window to reject that suspension.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 1 costs, 1 mixed.

New debt suspension and increase process

This bill would create a formal rule for Treasury to certify when more borrowing is needed after a debt-limit suspension. The Secretary would generally have to send that certification not earlier than 60 days and not later than 46 days before the suspension ends. The certificate must name an end date no later than two years after the suspension would have ended. If Congress does not pass a disapproval joint resolution within 45 calendar days, the suspension would remain from day 46 until the named end date. If the suspension takes effect then, the law would raise the statutory limit by the extra face amount of certain obligations outstanding on the day after the certification date compared with the most recent non-suspension day.

Limits on borrowing and cash reserves

This bill would narrow which new borrowings can count toward any temporary increase in the debt limit. Only obligations needed to pay legal commitments due before the day after the certification date could be counted. The Treasury would be barred from issuing obligations during the certified period to build cash balances above normal operating balances. This would limit Treasury's short-term cash-management flexibility during an extension.

Fast congressional votes on debt suspensions

This bill would require Congress to use a short, specific joint resolution to disapprove a Treasury certification. The House would have five days for committee action or be discharged, and House debate would be limited to two hours. The Senate would get immediate calendar placement and up to ten hours of debate. Many points of order and amendments would be waived. If the President vetoes, Senate debate on the veto message would be limited to one hour.

New debt metrics as percent of GDP

This bill would require Treasury reports to include debt held by the public as a percent of GDP. It would also require reporting debt held by the public net of financial assets as a percent of GDP. These two GDP-based numbers would be added to Treasury's regular information.

Sponsors & CoSponsors

Sponsor

Merkley, Jeff [D-OR]

OR • D

Cosponsors

  • Sen. Durbin, Richard J. [D-IL]

    IL • D

    Sponsored 7/23/2025

  • Sen. Kaine, Tim [D-VA]

    VA • D

    Sponsored 7/23/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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