WASHINGTON, D.C. – Today, U.S. Senator Shelley Moore Capito (R-W.Va.) and her colleagues reintroduced the Full Faith and Credit Act to ensure the federal government prioritizes funding for our military, veterans and seniors should the federal debt ceiling be reached with no action from Democrats to raise or suspend it.
“Every West Virginia family and business has to live within its means and our federal government shouldn’t be any different,” Senator Capito said. “This commonsense bill would require accountability for Washington’s reckless spending and finally begin to address our nation’s debt. Importantly, the Full Faith and Credit Act would also protect our veterans, service members, seniors, and those enrolled in Medicare from having their benefits affected by a potential default on the federal government’s debt.”
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.
- Requires 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.
- 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.
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