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S. 2181 (114th): Default Prevention Act


The text of the bill below is as of Oct 20, 2015 (Placed on Calendar in the Senate). The bill was not enacted into law.


II

Calendar No. 273

114th CONGRESS

1st Session

S. 2181

IN THE SENATE OF THE UNITED STATES

October 19, 2015

introduced the following bill; which was read the first time

October 20, 2015

Read the second time and placed on the calendar

A BILL

To provide guidance and priorities for Federal Government obligations in the event that the debt limit is reached.

1.

Short title

This Act may be cited as the Default Prevention Act.

2.

Prioritizing obligations

In the event that the debt of the Government of the United States reaches the statutory limit under section 3101 of title 31, United States Code, the following expenditures shall be granted priority over all other obligations incurred by the Government of the United States:

(1)

The authority of the Department of Treasury provided in section 3123 of title 31, United States Code, to pay with legal tender the principal and interest on debt held by the public.

(2)

The full payment of compensation, allowances, and benefits for members of the Armed Forces on active duty.

(3)

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.

(4)

The authority of the Secretary of Health and Human Services to make payments for items and services furnished to beneficiaries under the Medicare program under title XVIII of the Social Security Act and related provisions.

October 20, 2015

Read the second time and placed on the calendar