The United States’ debt is already in excess of $31.5 trillion and is approaching the debt ceiling. U.S. Senator Katie Britt and Senator Rick Scott have proposed legislation to keep defense spending, veterans benefits, social security, and Medicare payments coming if there is a partial government shutdown and the debt ceiling is not raised.
Scott and Britt were joined by Sens. Marsha Blackburn, Mike Braun, Ted Budd, Kevin Cramer, Ron Johnson, Mike Lee, Cynthia Lummis, and Jim Risch in reintroducing the Full Faith and Credit Act to address the federal debt crisis.
This legislation would ensure that the federal government prioritizes funding for the military, veterans, and seniors should the federal debt ceiling be reached due to the inability of Congress and the Biden Administration to reach a deal on either cutting federal spending or raising the debt ceiling.
“Our ballooning national debt is an economic and security crisis,” said Sen. Britt. “We can’t continue to recklessly pile this burden on the backs of our children and our children’s children. The American people deserve accountability over wasteful spending, and we accomplish that by prioritizing taxpayer dollars in a responsive and responsible manner. It is crucial that we maintain the full faith and credit of the United States, meet our obligations to Social Security and Medicare beneficiaries, maintain a strong national defense, and support our incredible veterans and servicemembers. This legislation would do exactly that.”
“The last two years have made crystal clear that the left, the big government crowd, and even Wall Street have found a very clever way to keep America forever stuck in a vicious tax-and-spend cycle where spending always goes up, debt always goes up – and if you dare to disagree – they say you want a default,” said Sen. Scott. “For them, it is a false choice: embrace overspending and massive debt, or be the one who destroys the American economy. That is nonsense and a lie. While Democrats want to maintain the status quo where a default threat looms over Americans every time their reckless spending hits our debt ceiling, I’m fighting to eliminate the threat of default and protect the federal government’s core responsibilities to the American people even while the Biden administration refuses to acknowledge we are in a time of fiscal crisis. Since the Treasury refuses to do what it can and must, it is time to pass the Full Faith and Credit Act. This bill would require the government to fulfill critical payments to the debt to avoid default and full fiscal calamity while Democrats refuse to take accountability for their wasteful spending. It would require Congress to ACTUALLY address the debt ceiling crisis. It also ensures Americans depending on important programs like Social Security, Medicare, and veteran benefits, as well as our service members, are not punished for Washington’s dysfunction. If Democrats reject this proposal, they are rejecting the protection of the full faith and credit of the United States and REJECTING a solution to the possibility of a default. It’s time for Washington to start living within its means, just like every family and business across the nation does, and preserve the American dream—this bill is a great start.”
The Full Faith and Credit Act is endorsed by Club for Growth, Americans for Prosperity, and FreedomWorks.
The Full Faith and Credit Act would require the following to take priority over all other federally incurred obligations in the event that the federal debt reaches the debt ceiling:
· The Department of the Treasury to pay the principal and interest on debt held by the public
· Social Security payments toward monthly Old Age, Survivors and Disability Insurance benefits under title II of the Social Security Act
· Pay and allowances for members of the Armed Forces on active duty and the United States Coast Guard;
· Payment of compensation and pensions and medical services provided by the United States Department of Veterans Affairs
· Medicare programs.
The bill would also require the Secretary of the Treasury, if the Secretary determines that incoming revenue will not be sufficient to finance the priorities described above over the following two weeks, to notify Congress of the expected revenue shortfall; and would authorize the Secretary to raise the debt limit by the amount necessary to cover the difference between incoming revenue and the revenue needed to finance those priorities on a two-week basis.
It would also prohibit such a debt limit increase from exceeding the difference between expected outlays for the listed priorities and expected revenue.
The President and Senate Democrats favor raising the debt ceiling without cutting any spending.
“We need to act,” President Joe Biden said on raising the debt ceiling. “These leaders know the need to act. The United States pays its bill. It’s who we are. It’s who we’ve been. It’s who we’re going to continue to be, God willing. That’s what’s called the full faith and credit of the United States.”
“Let’s be clear: Raising the debt limit is paying our old debts,” Biden continued. “It has nothing to do with new spending or what may be coming this year or other years. It has nothing to do with my plans on infrastructure or building back better, both of which are paid for, but they’re not even in — in the queue right now. It’s about paying for what we owe and preventing a catastrophic event occurring in our economy.”
Biden continued, “We had to raise the debt limit three times when Donald Trump was President. And the Republicans moved to raise it each time, and each time the Democrats supported the effort to raise the debt. But now Republicans won’t raise the debt limit despite being responsible for what the debt limit — why it has to be raised for the bills that are outstanding.”
A partial government shutdown is possible if Congress and the President cannot reach a deal on raising the debt limit.
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