H.R. 807: More Debt Ceiling Shenanigans

H.R. 807, the “Full Faith and Credit Act says that the United States will still make payments on our debt, the interest on the debt, and social security if we reach the debt ceiling. However, payments for everything else in the government is ignored and we would probably default on those bills. This bill has no chance of becoming law.

*Get all the details on this bill in podcast episode CD028: Overtime.

Background

In January, President Obama signed the “No Budget, No Pay Act” into law because it temporarily suspended the debt ceiling until May 18th, 2013. Well, May 18th is almost here. Welcome to yet another ridiculous, unnecessary debt ceiling crisis.

Bill Highlights

Section 2: Payment of Public Debt and Social Security

(a-c) If we hit the debt ceiling, the Treasury Secretary must make payments towards the principal and interest of the United States’ debt and social security payments.

(d) If the Secretary of the Treasury uses this authority to issue payments that exceed the debt ceiling, he must submit weekly reports to Congress. He can stop the reports when the debt ceiling is increased.

Support and Opposition

This is a political bill. It is supported by Republicans and opposed by Democrats.