What This Bill Does
This bill allows the Treasury Secretary (the federal official responsible for managing money and debt) to issue additional government bonds (financial promises to repay borrowed money) specifically to pay Medicare and Social Security benefits even when the federal government reaches its debt limit (the maximum amount of money Congress allows the government to borrow). Congress states that people receiving these benefits should be guaranteed full payment on time.
Who It Affects
Social Security beneficiaries (people receiving retirement, survivor or disability benefits through Social Security)
Medicare beneficiaries (people receiving health insurance benefits through Medicare)
The Secretary of the Treasury
Congress
Key Provisions
The Treasury Secretary may issue additional government bonds beyond the debt limit to make timely payment of full Medicare benefits and Social Security retirement, survivor and disability benefits when the current debt limit is reached. (Sec. 2(d)(1))
Bonds issued under this exemption will not count toward the debt limit calculation during the period beginning when the Secretary starts issuing them and ending the day after Congress passes a law raising the debt limit. (Sec. 2(d)(2))
What Changes
The law currently limiting how much the government can borrow would be modified to allow the Treasury Secretary to issue additional bonds beyond that limit when necessary to pay full Medicare and Social Security benefits on time. This exemption (exception to the rule) would last from when the Secretary starts issuing these extra bonds until the day after Congress passes a new law that increases the overall debt limit.
Important Definitions
None defined
Effective Date
Not specified in bill text
I
118TH CONGRESS
1ST SESSION
H. R. 875
To authorize the Secretary of the Treasury to issue obligations to make
Medicare and Social Security payments, despite the debt limit being reached.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 8, 2023
Mr. JAMES introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To authorize the Secretary of the Treasury to issue obliga-
tions to make Medicare and Social Security payments,
despite the debt limit being reached.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Protecting Social Secu-
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rity and Medicare Act’’.
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SEC. 2. SOCIAL SECURITY AND MEDICARE PROGRAMS AND
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THE DEBT LIMIT.
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(a) FINDING.—Congress finds that Social Security
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and Medicare beneficiaries should be assured that their
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benefits will be paid in full and on time.
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•HR 875 IH
(b) EXEMPTION.—Section 3101 of title 31, United
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States Code, is amended—
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(1) in subsection (b), by striking ‘‘The face’’
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and inserting ‘‘Subject to subsection (d), the face’’;
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and
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(2) by adding at the end the following:
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‘‘(d)(1) If the face value of the amount of obligations
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described in subsection (b) reaches the limit on such obli-
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gations under subsection (b), to the extent necessary to
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make timely payment of the full amount of benefits au-
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thorized under the Medicare program established under
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title XVIII of the Social Security Act (42 U.S.C. 1395
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et seq.) or the old-age, survivors, and disability insurance
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benefits program established under title II of the Social
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Security Act (42 U.S.C. 401 et seq.) the Secretary of the
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Treasury may issue obligations under this chapter.
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‘‘(2) With respect to each instance in which the Sec-
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retary of the Treasury begins issuing obligations in ac-
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cordance with paragraph (1), the face value of such obliga-
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tions issued during such instance shall not be taken into
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account in determining the face value of obligations for
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purposes of subsection (b) during the period—
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‘‘(A) beginning on the date on which the Sec-
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retary began issuing obligations in accordance with
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paragraph (1) during such instance; and
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•HR 875 IH
‘‘(B) ending on the day after the date of enact-
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ment of the first law enacted after the date de-
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scribed in subparagraph (A) increasing the limit
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under subsection (b).’’.
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Æ
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