This bill exempts certain obligations of the federal government from the statutory debt limit and establishes requirements for paying and prioritizing obligations after the debt limit is reached.
If the debt limit is reached, the bill requires the Department of the Treasury to continue issuing debt and making payments necessary to (1) pay the principal and interest on debt held by the public, the Social Security trust funds, and the Medicare trust funds; and (2) pay Medicare benefits. The bill also exempts these obligations from the debt limit until the debt limit has been modified or suspended.
The bill also establishes requirements for prioritizing the remaining obligations after the debt limit has been reached. Specifically, Treasury may not
pay any remaining obligations unless it can still pay obligations of the Department of Defense and any obligations necessary to provide benefits under laws administered by the Department of Veterans Affairs; pay obligations related to the compensation of federal employees for official time; government travel for executive branch officers or employees; and the compensation of the President, the Vice President, and other members of the executive branch (other than individuals in the competitive service) unless all other obligations except for compensation of Members of Congress can still be paid; and compensate Members of Congress unless all other obligations can still be paid. Finally, the bill requires Treasury to provide weekly reports to Congress regarding new debt issued and obligations that have been paid or not paid under the bill.