The DEBT Act would add a new requirement for the Secretary of the Treasury to appear before Congress whenever the government anticipates that the public debt will reach the statutory limit or that extraordinary measures will be used to prevent default. Not more than 60 days and not less than 21 days before such a date, the Secretary would have to publicly brief the House Ways and Means Committee and the Senate Finance Committee with a detailed explanation of the proposed extraordinary measures (and their administrative costs) and any reversals or changes to funding that would result from the debt-limit increase. The bill also precisely defines what counts as “extraordinary measures” and adds a clerical amendment to codify this new requirement in the U.S. Code. In short, it creates a formal, time-bound, preemptive congressional appearance and requires a detailed accounting of planned debt-management actions before the debt limit is reached or before extraordinary measures are used.
Key Points
- 1Establishes a new Sec. 3131 in Title 31 requiring the Treasury Secretary to appear before Congress not more than 60 days and not less than 21 days before the debt limit is reached or before extraordinary measures are taken, to explain the actions and costs involved.
- 2Requires the Secretary to provide a detailed explanation of: (1) extraordinary measures to fund federal obligations prior to the increase and their estimated administrative cost, and (2) reversals or other changes to funding resulting from the debt-limit increase.
- 3Defines “extraordinary measures” as a specific set of actions, including suspending SLGS securities sales, redeeming or suspending investments in certain federal funds (CSRS, Postal Service Retiree Health Benefits Fund, G-Fund, Exchange Stabilization Fund, etc.), directing or approving certain debt issuances, suspending reinvestment in several government investment funds, and selling or redeeming assets of certain retirement funds before maturity.
- 4Adds a clerical amendment to insert the new Sec. 3131 into the table of analysis for Chapter 31, Title 31, United States Code.
- 5Provides a clear short title for the act: the Debt Explanation Before Taxwriters Act or the DEBT Act.