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Version 00 · Introduced in House · Jan 3, 2025
Default Prevention Act
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.
Showing the opening paragraphs of the official summary.
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.
People & committees
Rep. McClintock, Tom [R-CA-5] · R–CA
Legislative record
A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.
Referred to the House Committee on Ways and Means.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: May 20, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2025-01-03 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
The proposed Default Prevention Act would set payment priorities when federal debt reaches its legal limit. Treasury would have to keep paying specified federal debts and Medicare obligations, with borrowing authority to support those payments. Other payments would face a tiered system: defense and veterans’ benefits would take priority over most other obligations, while congressional pay would come last.
This Act may be cited as the Default Prevention Act.
At any time that the debt of the United States Government subject to limitation under section 3101 of title 31, United States Code, has reached the limitation imposed under such section, the Secretary of the Treasury (hereafter in this section referred to as the Secretary) shall— (1) pay Tier I obligations as such obligations become due, (2) issue such obligations under chapter 31 of title 31, United States Code, as— (A) are necessary to make the payments described in paragraph (1), or (B) are to be held exclusively by a trust fund referred to in subsection (b)(1)(A)
(A) Payment with legal tender pursuant to the authority provided under section 3123 of title 31, United States Code, of principal and interest on debt held by— (i) the public, (ii) the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund, or (iii) the Federal Hospital Insurance Trust Fund or the Federal Supplementary Medical Insurance Trust Fund. (B) Payments under the Medicare program under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.).
(3) pay Tier III obligations only to the extent that the Secretary can still pay all Tier II obligations as such obligations become due, (4) pay Tier IV obligations only to the extent that the Secretary can still pay all Tier II and Tier III obligations as such obligations become due, (5) pay Tier V obligations only to the extent that the Secretary can still pay all Tier II, Tier III, and Tier IV obligations as such obligations become due
(2) Tier II obligations The term Tier II obligations means payments necessary to provide any of the following: (A) Any obligation of the Department of Defense. (B) Benefits under laws administered by the Secretary of Veterans Affairs.
(5) Tier V obligations The term Tier V obligations means compensation of any Member of Congress (as that term is defined in section 2106 of title 5, United States Code).
The proposed payment rules would apply whenever federal debt covered by the statutory debt limit reaches that limit. This is a condition based on the amount of debt, rather than a specified calendar date.
At any time that the debt of the United States Government subject to limitation under section 3101 of title 31, United States Code, has reached the limitation imposed under such section, the Secretary of the Treasury (hereafter in this section referred to as the Secretary) shall—
Tier I would cover repayment of borrowed money, called principal, and interest on federal debt held by the public or the listed Social Security and Medicare trust funds. It would also cover Medicare program payments. Treasury would have to pay these obligations as they become due; the trust-fund provision concerns debt held by those funds.
(1) pay Tier I obligations as such obligations become due
(1) Tier I obligations The term Tier I obligations means payments necessary to provide any of the following: (A) Payment with legal tender pursuant to the authority provided under section 3123 of title 31, United States Code, of principal and interest on debt held by— (i) the public, (ii) the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund, or (iii) the Federal Hospital Insurance Trust Fund or the Federal Supplementary Medical Insurance Trust Fund. (B) Payments under the Medicare program under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.).
Treasury would have to issue federal debt as necessary to pay Tier I obligations, or for exclusive holding by one of the listed trust funds. Debt issued under this authority would temporarily be excluded from the statutory debt limit.
(2) issue such obligations under chapter 31 of title 31, United States Code, as— (A) are necessary to make the payments described in paragraph (1), or (B) are to be held exclusively by a trust fund referred to in subsection (b)(1)(A)
Obligations issued under subsection (a)(2) shall not be taken into account as subject to the limitation imposed under section 3101(b) of title 31, United States Code.
For each debt obligation issued under the special authority, its exclusion from the debt limit would end on the first date after issuance when a modification or suspension of that limit takes effect.
The preceding sentence shall not apply with respect to any obligation after the first date (after the issuance of such obligation) on which any modification or suspension of such limitation takes effect.
Tier II would include all Department of Defense obligations and benefits under laws administered by the Secretary of Veterans Affairs. Tier III would contain federal obligations outside the other four tiers. Treasury could pay Tier III obligations only to the extent it could still pay all Tier II obligations on time.
(2) Tier II obligations The term Tier II obligations means payments necessary to provide any of the following: (A) Any obligation of the Department of Defense. (B) Benefits under laws administered by the Secretary of Veterans Affairs. (3) Tier III obligations The term Tier III obligations means any obligation of the United States which is not a Tier I, Tier II, Tier IV, or Tier V obligation.
(3) pay Tier III obligations only to the extent that the Secretary can still pay all Tier II obligations as such obligations become due
Tier IV would include federal employee pay for “official time,” a category defined by the cited existing law. It would also include executive-branch travel payments, including presidential and vice-presidential travel, unless those payments qualify for Tier I or Tier II.
(4) Tier IV obligations The term Tier IV obligations means any payment which constitutes any of the following: (A) Compensation for any Federal employee for official time under section 7131 of such title 5, United States Code. (B) Any payment for travel expenses for any officer or employee of the Executive branch of Government, including the President and Vice President, unless such payment is a Tier I or Tier II obligation.
Tier IV would also include pay for executive-branch officers and employees outside the legally defined “competitive service” employment category, including the President and Vice President, unless that pay qualifies for Tier I or Tier II. Treasury could pay Tier IV obligations only while remaining able to pay all Tier II and Tier III obligations on time.
(C) Compensation of any officer or employee of the Executive branch of Government (other than an individual in the competitive service, as defined in section 2102 of title 5, United States Code), including the President and Vice President, unless such compensation is a Tier I or Tier II obligation.
(4) pay Tier IV obligations only to the extent that the Secretary can still pay all Tier II and Tier III obligations as such obligations become due
Tier V would consist of congressional pay. Treasury could pay it only to the extent it could still pay all Tier II, Tier III and Tier IV obligations on time.
(5) Tier V obligations The term Tier V obligations means compensation of any Member of Congress (as that term is defined in section 2106 of title 5, United States Code).
(5) pay Tier V obligations only to the extent that the Secretary can still pay all Tier II, Tier III, and Tier IV obligations as such obligations become due
While these rules apply, Treasury would have to send weekly written reports to the House Ways and Means Committee and Senate Finance Committee. Reports would show Tier I payments, debt issued under the special authority, and—for each of Tiers II through V—amounts paid and total amounts due but unpaid at the reporting period’s close.
(6) submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a weekly written report containing the information described in subsection (d).
(d) Weekly reports The written report referred to in subsection (a)(6) shall include, with respect to the period covered by such report— (1) the amount of Tier I obligations paid under subsection (a)(1) during such period, (2) the amount of obligations issued under subsection (a)(2) during such period, and (3) the amount of Tier II obligations, Tier III obligations, Tier IV obligations, and Tier V obligations which were paid during such period (stated separately for each tier) and the aggregate amount of such obligations which were due and unpaid as of the close of such period (stated separately for each tier).
Outside periods when these rules apply, the bill would not be interpreted to restrict Treasury’s authority to prioritize some payments over others. This clause does not describe the extent of that existing authority.
(e) No inference with respect to existing authority to prioritize payments During any period with respect to which this section does not apply, nothing in this section shall be interpreted to restrict the authority of the Secretary to prioritize the payment of certain obligations over other obligations.
The supplied official-actions snapshot, updated May 20, 2026, records introduction in the House and referral to the House Committee on Ways and Means on January 3, 2025.
Source snapshot updated 2026-05-20T18:08:37Z. 2025-01-03: Referred to the House Committee on Ways and Means. 2025-01-03: Introduced in House
A closer look
Reviewed version: Introduced in House · 2025-01-03. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or policy rider attached to appropriations was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
None identified in the reviewed text
No materially narrow special benefit was identified under the supplied definition. The complete introduced text sets broad payment priorities and employment categories. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials.
Full text preserved for this analysis. Legislative record snapshot: May 20, 2026. How PlainBill uses AI