[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1420 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 112
112th CONGRESS
  1st Session
                                S. 1420

To require that the United States Government prioritize all obligations 
on the debt held by the public, Social Security benefits, and military 
    pay in the event that the debt limit is reached, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 27, 2011

Mr. Toomey (for himself, Mr. Vitter, Mr. Paul, Mr. Rubio, Mr. Lee, Mr. 
 Risch, Mr. DeMint, Mr. Hoeven, Mr. Coats, Mr. Barrasso, Mr. Boozman, 
Mr. Chambliss, Mr. Coburn, Mr. Cornyn, Mr. Crapo, Mr. Enzi, Mr. Graham, 
 Mr. Grassley, Mr. Hatch, Mr. Heller, Mrs. Hutchison, Mr. Inhofe, Mr. 
Johanns, Mr. Johnson of Wisconsin, Mr. Kirk, Mr. Lugar, Mr. Moran, Mr. 
   Roberts, Mr. Wicker, Ms. Ayotte, Mr. Isakson, Mr. Blunt, and Mr. 
  Corker) introduced the following bill; which was read the first time

                             July 27, 2011

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
To require that the United States Government prioritize all obligations 
on the debt held by the public, Social Security benefits, and military 
    pay in the event that the debt limit is reached, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This title may be cited as the ``Ensuring the Full Faith and Credit 
of the United States and Protecting America's Soldiers and Seniors 
Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The Secretary of the Treasury is legally required to 
        carry out the obligations set forth in Public Law 104-121.
            (2) The debt obligations held by the Social Security trust 
        fund may only be redeemed in order to pay Social Security 
        benefits and necessary administrative expenses.
            (3) So long as there is a positive balance of assets in the 
        Social Security trust fund, an appropriate amount of 
        obligations may be converted into an equal amount of publicly 
        held debt in order to finance the full and timely payment of 
        all Social Security obligations without exceeding the debt 
        ceiling.

SEC. 3. PRIORITIZE OBLIGATIONS ON THE DEBT HELD BY THE PUBLIC, SOCIAL 
              SECURITY BENEFITS, AND MILITARY PAY.

    In the event that the debt of the United States Government reaches 
the statutory limit as defined in section 3101 of title 31, United 
States Code, the following shall take equal priority over all other 
obligations incurred by the Government of the United States:
            (1) The authority of the Department of the Treasury 
        contained in section 3123 of title 31, United States Code, to 
        pay with legal tender the principal and interest on debt held 
        by the public.
            (2) The authority of the Commissioner of Social Security to 
        pay monthly old-age, survivors' and disability insurance 
        benefits under title II of the Social Security Act.
            (3) The payment of pay and allowances for members of the 
        Armed Forces on active duty.
                                                       Calendar No. 112

112th CONGRESS

  1st Session

                                S. 1420

_______________________________________________________________________

                                 A BILL

To require that the United States Government prioritize all obligations 
on the debt held by the public, Social Security benefits, and military 
    pay in the event that the debt limit is reached, and for other 
                               purposes.

_______________________________________________________________________

                             July 27, 2011

            Read the second time and placed on the calendar