End the Threat of Default Act

II 117TH CONGRESS 1ST SESSION S. 1785 To repeal the debt ceiling, and for other purposes. IN THE SENATE OF THE UNITED STATES MAY 20, 2021 Mr. SCHATZ (for himself, Mr. BENNET, Mr. VAN HOLLEN, and Mr. WHITE- HOUSE) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To repeal the debt ceiling, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘End the Threat of 4 Default Act’’. 5 SEC. 2. REPEAL OF DEBT CEILING. 6 (a) IN GENERAL.—Section 3101 of title 31, United 7 States Code, is repealed. 8 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 9 (1) Section 301(b)(5) of the Congressional 10 Budget Act of 1974 (2 U.S.C. 632(b)(5)) is amend- 11 VerDate Sep 11 2014 20:34 Jun 09, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1785.IS S1785 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 1785 IS ed by striking ‘‘debt subject to limit (in section 3101 1 of title 31 of the United States Code)’’ and inserting 2 ‘‘face value of obligations issued under chapter 31 of 3 title 31, United States Code, and the face amount 4 of obligations whose principal and interest are guar- 5 anteed by the United States Government (except 6 guaranteed obligations held by the Secretary of the 7 Treasury)’’. 8 (2) Section 8348 of title 5, United States Code, 9 is amended by striking subsections (j), (k), and (l). 10 (3) Section 8438 of title 5, United States Code, 11 is amended by striking subsections (g) and (h). 12 (4) Section 14(d)(2) of the Federal Deposit In- 13 surance Act (12 U.S.C. 1824(d)(2)) is amended— 14 (A) by striking subparagraph (A); and 15 (B) by redesignating subparagraphs (B), 16 (C), and (D) as subparagraphs (A), (B), and 17 (C), respectively. 18 (5) Section 3101A of title 31, United States 19 Code, is repealed. 20 (6) Section 3130(e)(2) of title 31, United 21 States Code, is amended by striking ‘‘total amount 22 of the obligations subject to the public debt limit es- 23 tablished in section 3101 of this title’’ and inserting 24 ‘‘face value of obligations issued under this chapter 25 VerDate Sep 11 2014 20:34 Jun 09, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1785.IS S1785 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 1785 IS and the face amount of obligations whose principal 1 and interest are guaranteed by the United States 2 Government (except guaranteed obligations held by 3 the Secretary of the Treasury)’’. 4 (7) Section 1145(b) of the Social Security Act 5 (42 U.S.C. 1320b–15(b)) is amended by striking 6 ‘‘any obligation subject to the public debt limit es- 7 tablished under section 3101 of title 31, United 8 States Code’’ and inserting ‘‘any obligation issued 9 under chapter 31 of title 31, United States Code, 10 and any obligation whose principal and interest are 11 guaranteed by the United States Government (ex- 12 cept guaranteed obligations held by the Secretary of 13 the Treasury)’’. 14 (8) The table of sections for chapter 31 of title 15 31, United States Code, is amended by striking the 16 items relating to sections 3101 and 3101A. 17 (c) SAVINGS PROVISIONS.— 18 (1) CIVIL SERVICE RETIREMENT AND DIS- 19 ABILITY FUND.—Notwithstanding the amendments 20 made by subsection (b), paragraphs (2), (3), and (4) 21 of subsection (j) and subsection (l)(1) of section 22 8348 of title 5, United States Code, as in effect on 23 the day before the date of enactment of this Act, 24 shall apply to any debt issuance suspension period 25 VerDate Sep 11 2014 20:34 Jun 09, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1785.IS S1785 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 1785 IS (as defined under section 8348(j)(5) of such title) 1 that is in effect on the date of enactment of this 2 Act. 3 (2) THRIFT SAVINGS FUND.—Notwithstanding 4 the amendments made by subsection (b), paragraphs 5 (2), (3), and (4) of subsection (g) and subsection 6 (h)(1) of section 8438 of title 5, United States Code, 7 as in effect on the day before the date of enactment 8 of this Act, shall apply to any debt issuance suspen- 9 sion period (as defined under section 8438(g)(6) of 10 such title) that is in effect on the date of enactment 11 of this Act. 12 Æ VerDate Sep 11 2014 20:34 Jun 09, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S1785.IS S1785 pamtmann on DSKBC07HB2PROD with BILLS