WASHINGTON, D.C., January 25, 2023 – United States Senator Katie Boyd Britt and Senator Rick Scott were joined by Senators Marsha Blackburn, Mike Braun, Ted Budd, Kevin Cramer, Ron Johnson, Mike Lee, Cynthia Lummis, and Jim Risch in reintroducing the Full Faith and Credit Act to address the federal debt crisis.
This legislation ensures the federal government prioritizes funding for our military, veterans, and seniors should the federal debt ceiling be reached due to the Biden Administration refusing to exercise its authority and prevent default.
“Our ballooning national debt is an economic and security crisis. We can’t continue to recklessly pile this burden on the backs of our children and our children’s children. The American people deserve accountability over wasteful spending, and we accomplish that by prioritizing taxpayer dollars in a responsive and responsible manner,” said U.S. Senator Katie Britt. “It is crucial that we maintain the full faith and credit of the United States, meet our obligations to Social Security and Medicare beneficiaries, maintain a strong national defense, and support our incredible veterans and servicemembers. This legislation would do exactly that.”
“The last two years have made crystal clear that the left, the big government crowd and even Wall Street have found a very clever way to keep America forever stuck in a vicious tax-and-spend cycle where spending always goes up, debt always goes up – and if you dare to disagree – they say you want a default. For them it is a false choice: embrace overspending and massive debt, or be the one who destroys the American economy. That is nonsense and a lie. While Democrats want to maintain the status quo where a default threat looms over Americans every time their reckless spending hits our debt ceiling, I’m fighting to eliminate the threat of default and protect the federal government’s core responsibilities to the American people even while the Biden administration refuses to acknowledge we are in a time of fiscal crisis,” stated Senator Rick Scott. “Since the Treasury refuses to do what it can and must, it is time to pass the Full Faith and Credit Act. This bill would require the government to fulfill critical payments to the debt to avoid default and full fiscal calamity while Democrats refuse to take accountability for their wasteful spending. It would require Congress to ACTUALLY address the debt ceiling crisis. It also ensures Americans depending on important programs like Social Security, Medicare, veteran benefits, as well as our service members, are not punished for Washington’s dysfunction. If Democrats reject this proposal, they are rejecting the protection of the full faith and credit of the United States and REJECTING a solution to the possibility of a default. It’s time for Washington to start living within its means, just like every family and business across the nation does, and preserve the American dream—this bill is a great start.”
The Full Faith and Credit Act is endorsed by Club for Growth, Americans for Prosperity and FreedomWorks.
The Full Faith and Credit Act would:
- Require the following to take priority over all other federally incurred obligations in the event that the federal debt reaches the debt ceiling:
- The Department of the Treasury to pay the principal and interest on debt held by the public;
- Social Security payments toward monthly Old Age, Survivors and Disability Insurance benefits under title II of the Social Security Act;
- Pay and allowances for members of the Armed Forces on active duty and the United States Coast Guard;
- Payment of compensation and pensions and medical services provided by the United States Department of Veterans Affairs; and
- Medicare programs.
- Require the Secretary of the Treasury, if the Secretary determines that incoming revenue will not be sufficient to finance the priorities described above over the following two weeks, to:
- Notify Congress of the expected revenue shortfall; and
- Raise the debt limit by the amount necessary to cover the difference between incoming revenue and the revenue needed to finance such priorities on a two-week basis.
- Prohibit such a debt limit increase from exceeding the difference between expected outlays for the listed priorities and expected revenue.