End the Threat of Default Act

12/21/2024, 9:05 AM

End the Threat of Default Act

This bill repeals the statutory debt limit, which limits the amount of money that the federal government may borrow.

Bill 118 hr 415, also known as the End the Threat of Default Act, is a piece of legislation currently being considered by the US Congress. The main goal of this bill is to prevent the United States from defaulting on its financial obligations by ensuring that the government has the necessary funds to meet its debt payments.

The bill proposes several measures to achieve this goal. Firstly, it authorizes the Treasury Department to take certain actions to prioritize debt payments in the event that the government reaches its borrowing limit. This would help ensure that the US does not default on its debt, which could have serious consequences for the economy.

Additionally, the bill includes provisions to increase transparency and accountability in the federal budgeting process. It requires the Treasury Department to provide regular updates on the government's financial situation and debt levels, as well as to report on any actions taken to prevent default. Overall, the End the Threat of Default Act aims to protect the US economy from the potentially catastrophic effects of a government default. By prioritizing debt payments and increasing transparency in the budgeting process, this bill seeks to ensure that the United States can continue to meet its financial obligations and maintain its reputation as a reliable borrower in the global financial markets.
Congress
118

Number
HR - 415

Introduced on
2023-01-20

# Amendments
0

Sponsors
+5

Cosponsors
+5

Variations and Revisions

1/20/2023

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

End the Threat of Default Act

This bill repeals the statutory debt limit, which limits the amount of money that the federal government may borrow.

Bill 118 hr 415, also known as the End the Threat of Default Act, is a piece of legislation currently being considered by the US Congress. The main goal of this bill is to prevent the United States from defaulting on its financial obligations by ensuring that the government has the necessary funds to meet its debt payments.

The bill proposes several measures to achieve this goal. Firstly, it authorizes the Treasury Department to take certain actions to prioritize debt payments in the event that the government reaches its borrowing limit. This would help ensure that the US does not default on its debt, which could have serious consequences for the economy.

Additionally, the bill includes provisions to increase transparency and accountability in the federal budgeting process. It requires the Treasury Department to provide regular updates on the government's financial situation and debt levels, as well as to report on any actions taken to prevent default. Overall, the End the Threat of Default Act aims to protect the US economy from the potentially catastrophic effects of a government default. By prioritizing debt payments and increasing transparency in the budgeting process, this bill seeks to ensure that the United States can continue to meet its financial obligations and maintain its reputation as a reliable borrower in the global financial markets.
Alternative Names
Official Title as IntroducedTo repeal the debt ceiling, and for other purposes.

Policy Areas
Economics and Public Finance

Potential Impact
Budget deficits and national debt

Comments

Recent Activity

Latest Summary2/1/2023

End the Threat of Default Act

This bill repeals the statutory debt limit, which limits the amount of money that the federal government may borrow.


Latest Action12/17/2024
Referred to the Subcommittee on Health.