by Sen. Rick Scott (R-Fla.) circulated a letter to Senate colleagues Thursday urging them to again his plan to make sure the federal authorities doesn’t default on curiosity payments or payments to Social Security beneficiaries if Congress fails to elevate the debt limit earlier than the Treasury Department runs out of borrowing authority.
Scott’s bill, which is co-sponsored by Sen. Ron Johnson (R-Wis.), is known as the Full Faith and Credit Act and would require the Treasury Department to proceed to pay the principal and curiosity on debt held by the general public and guarantee Social Security payments proceed to old-age and incapacity beneficiaries.
It would additionally prioritize payments to energetic members of the armed companies and U.S. Coast Guard and compensation and pensions supplied by the Veterans Affairs Department.
Finally, it will additionally instruct the Treasury Department to prioritize Medicare payments.
Their bill ensures that the Treasury Department is not going to run out of cash to cowl debt payments, Social Security payments and different stipulated obligations as a result of it requires the Treasury secretary to notify Congress of any anticipated income shortfall and lift the debt limit by the quantity vital to cowl these priorities on a two-week foundation.
Scott known as the bill a “commonsense resolution” that “protects entitlement applications, ensures our navy members are taken care of and takes a default risk off the desk by mandating curiosity payments on our debt.”
The Florida senator stated President Biden and Treasury Secretary Janet Yellen “possess the total authority to prioritize debt payments and be certain that the total religion and credit score of the United States is rarely in query.”
“No one desires to default,” he wrote.
Johnson in a separate assertion stated the laws “will assure that the federal government doesn’t default on its debt and prioritizes spending for the women and men in our navy in addition to those that depend upon Social Security, Medicare and veteran advantages.”
Senate Democrats have rejected previous Republican calls to prioritize curiosity and Social Security payments within the occasion that Congress fails to move laws to elevate the debt limit earlier than the federal government runs out of borrowing authority.
