IN THE SENATE OF THE UNITED STATES
January 22 (legislative day, January 3), 2013
Mr. Toomey (for himself, Mr. Vitter, Mr. Lee, Mr. Rubio, Mr. Enzi, Mr. Barrasso, Mr. Chambliss, Mr. Inhofe, Mr. Blunt, Mr. Johnson of Wisconsin, Mr. Heller, Mr. Flake, Mr. Risch, Ms. Ayotte, Mr. Isakson, Mr. Grassley, and Mr. Cruz) introduced the following bill; which was read twice and referred to the Committee on Finance
To protect Social Security benefits and military pay and require that the United States Government prioritize all obligations on the debt held by the public in the event that the debt limit is reached.
This title may be cited
Ensuring the Full Faith and
Credit of the United States and Protecting America's Soldiers and Seniors
Prioritize obligations on the debt held by the public, Social Security benefits, and military pay
In the event that the debt of the United States Government reaches the statutory limit as defined in section 3101 of title 31, United States Code, the following shall take equal priority over all other obligations incurred by the Government of the United States:
The authority of the Department of the Treasury contained in section 3123 of title 31, United States Code, to pay with legal tender the principal and interest on debt held by the public.
The authority of the Commissioner of Social Security to pay monthly old-age, survivors’ and disability insurance benefits under title II of the Social Security Act.
The payment of pay and allowances for members of the Armed Forces on active duty.
Limited debt limit authority
If the Secretary of the Treasury determines, after consultation with the Director of the Office of Management and Budget, that incoming revenue will not be sufficient to finance the priorities listed in section 2 over the following 2 weeks, the Secretary, in coordination with the Director of the Office of Management and Budget, shall—
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 the priorities listed in section 2 on a 2-week basis.
The debt limit increase provided by subsection (a)(2) may not exceed the difference between expected outlays for the listed priorities and expected revenue.
If incoming revenue exceeds the amount projected by the Secretary of the Treasury, in consultation with the Director of the Office of Management and Budget, needed to finance the priorities listed in section 2 over the 2-week period, any amount in excess shall be held in reserve and applied to the following 2-week period.