What This Bill Does
This bill allows the Secretary of the Treasury to issue bonds (a type of debt obligation borrowed by the government) in order to pay Medicare and Social Security benefits even after the nation reaches its debt limit (the maximum amount the government is allowed to borrow). The bill is called the "Keep Our Promises Act."
Who It Affects
People who receive Medicare benefits (healthcare for seniors and some disabled people), people who receive Social Security benefits (retirement and disability payments), and the Treasury Department.
Key Provisions
• The Secretary of the Treasury can issue bonds to pay the full amount of Medicare benefits and Social Security old-age, survivors and disability insurance benefits when the debt limit is reached, as long as these payments are made on time (Sec. 2(b)).
• Bonds issued under this exception do not count toward the debt limit during the period starting when the Secretary begins issuing them and ending the day after Congress passes a new law that increases the debt limit (Sec. 2(b)).
What Changes
The current law that prevents the Treasury from issuing bonds beyond the debt limit will have an exception for Medicare and Social Security benefit payments.
Important Definitions
Obligations: bonds or other forms of debt that the government issues.
II
118TH CONGRESS
1ST SESSION
S. 213
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 SENATE OF THE UNITED STATES
FEBRUARY 1, 2023
Mr. HAWLEY introduced the following bill; which was read twice and referred
to the Committee on Finance
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 ‘‘Keep Our Promises
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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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•S 213 IS
(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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•S 213 IS
‘‘(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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