What This Bill Does
This bill requires the federal government to pay certain obligations first if the United States reaches its debt limit (the maximum amount the government is allowed to borrow). The bill protects payments for Social Security benefits, military pay, veterans benefits and Medicare by making sure these get paid before other government expenses.
Who It Affects
Social Security beneficiaries, active duty military members, Coast Guard members, veterans, Medicare recipients, the Treasury Department, the Office of Management and Budget and Congress.
Key Provisions
• The government must give equal priority to five types of payments if the debt limit is reached: payments on money borrowed by the public, Social Security benefits, military pay and allowances, veterans compensation and medical services, and Medicare programs (Sec. 2)
• The Treasury Secretary must notify Congress if incoming government money will not be enough to pay these priority obligations during any two-week period while at the debt limit (Sec. 3(a))
• The debt limit can be increased by the amount needed to cover the shortfall in revenue for that two-week period (Sec. 3(a))
• If the government takes in more money than expected during a two-week period, the extra money is held and applied to the next two-week period (Sec. 3(b))
What Changes
If this bill becomes law, the Treasury Secretary gains the authority to increase the debt limit in two-week increments when revenue falls short of what is needed to pay the five priority obligations listed above.
Important Definitions
None defined in bill text.
II
Calendar No. 6
118TH CONGRESS
1ST SESSION
S. 82
To protect social security benefits and military pay and require that the
United States Government to prioritize all obligations on the debt held
by the public in the event that the debt limit is reached.
IN THE SENATE OF THE UNITED STATES
JANUARY 25, 2023
Mr. SCOTT of Florida (for himself, Mr. JOHNSON, Ms. LUMMIS, Mr. LEE, Mr.
BRAUN, Mr. CRAMER, Mrs. BRITT, Mr. RISCH, Mr. BUDD, and Mrs.
BLACKBURN) introduced the following bill; which was read the first time
JANUARY 26, 2023
Read the second time and placed on the calendar
A BILL
To protect social security benefits and military pay and re-
quire that the United States Government to prioritize
all obligations on the debt held by the public in the
event that the debt limit is reached.
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 ‘‘Full Faith and Credit
4
Act’’.
5
VerDate Sep 11 2014
23:33 Jan 26, 2023
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\S82.PCS
S82
kjohnson on DSK79L0C42PROD with BILLS
2
•S 82 PCS
SEC. 2. PRIORITIZE OBLIGATIONS ON THE DEBT HELD BY
1
THE PUBLIC, SOCIAL SECURITY BENEFITS,
2
MEDICARE, VETERANS, AND MILITARY PAY.
3
If the debt of the United States Government reaches
4
the statutory limit under section 3101 of title 31, United
5
States Code, the following obligations shall take equal pri-
6
ority over all other obligations incurred by the United
7
States Government:
8
(1) The authority of the Department of the
9
Treasury provided under section 3123 of title 31,
10
United States Code, to pay with legal tender the
11
principal and interest on debt held by the public.
12
(2) The authority of the Commissioner of Social
13
Security to pay monthly old-age, survivors’, and dis-
14
ability insurance benefits under title II of the Social
15
Security Act (42 U.S.C. 401 et seq.).
16
(3) The payment of pay and allowances for
17
members of the Armed Forces on active duty and
18
members of the United States Coast Guard.
19
(4) The payment of compensation and pensions,
20
and payments for medical services, provided by the
21
Department of Veterans Affairs.
22
(5) The Medicare programs under parts A, B,
23
C, and D of title XVIII of the Social Security Act
24
(42 U.S.C. 1395c et seq.).
25
VerDate Sep 11 2014
23:33 Jan 26, 2023
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\S82.PCS
S82
kjohnson on DSK79L0C42PROD with BILLS
3
•S 82 PCS
SEC. 3. LIMITED DEBT LIMIT AUTHORITY.
1
(a) IN GENERAL.—If the Secretary of the Treasury
2
determines, after consultation with the Director of the Of-
3
fice of Management and Budget, that incoming revenue
4
will not be sufficient to pay the priority obligations speci-
5
fied under section 2 over an upcoming 2-week period dur-
6
ing a period during which the debt of the United States
7
Government has reached the statutory limit under section
8
3101 of title 31, United States Code—
9
(1) the Secretary, in coordination with the Di-
10
rector of the Office of Management and Budget,
11
shall notify Congress of the amount of the expected
12
revenue shortfall from the revenue required to pay
13
in full the priority obligations specified under section
14
2 for such 2-week period; and
15
(2) the amount of the limit on debt held by the
16
public under section 3101 of title 31, United States
17
Code, shall be increased by the amount of the ex-
18
pected revenue shortfall.
19
(b) EXCESS REVENUE.—If incoming revenue exceeds
20
the amount projected under subsection (a), any amount
21
in excess shall be held in reserve and applied to the fol-
22
lowing 2-week period.
23
VerDate Sep 11 2014
23:33 Jan 26, 2023
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\S82.PCS
S82
kjohnson on DSK79L0C42PROD with BILLS
Calendar No. 6
118TH CONGRESS
1ST SESSION
S. 82
A BILL
To protect social security benefits and military pay
and require that the United States Government
to prioritize all obligations on the debt held by
the public in the event that the debt limit is
reached.
JANUARY 26, 2023
Read the second time and placed on the calendar
VerDate Sep 11 2014
23:33 Jan 26, 2023
Jkt 039200
PO 00000
Frm 00004
Fmt 6651
Sfmt 6651
E:\BILLS\S82.PCS
S82
kjohnson on DSK79L0C42PROD with BILLS