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End the Threat of Default Act

Source: Congress.gov  ·  888 words in original text
This bill removes the debt ceiling, which is a legal limit on how much money the federal government can borrow. The bill also makes changes to federal laws that currently reference the debt ceiling.
The bill directly affects federal agencies and programs that manage government borrowing and retirement funds for federal employees, including the Civil Service Retirement and Disability Fund and the Thrift Savings Fund.
• The federal government's debt ceiling limit is eliminated from federal law (Sec. 2(a)) • References to the debt ceiling in the Congressional Budget Act of 1974 are replaced with new language about government obligations and guaranteed debt (Sec. 2(b)(1)) • Sections of federal law relating to debt issuance suspension periods in federal employee retirement programs are repealed (Sec. 2(b)(2) and Sec. 2(b)(3)) • Changes are made to the Federal Deposit Insurance Act by removing one provision and renumbering others (Sec. 2(b)(4)) • Certain rules that existed before this law passed continue to apply to any debt issuance suspension period already in effect when the bill becomes law (Sec. 2(c))
If this bill becomes law, the government would no longer have a maximum amount it is legally allowed to borrow. Federal laws that currently mention the debt ceiling would be updated to refer instead to the face value of government obligations and guaranteed debt.
Not specified in bill text
Not specified in bill text
Important: This plain English summary was generated by AI and is provided for informational purposes only. It is not legal advice. Always consult the official bill text on Congress.gov or a qualified attorney for legal matters.