[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2168 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 2168

To rescind discretionary appropriations in the event of a debt ceiling 
 crisis period and to honor the full faith and credit of the debts of 
        the United States in the event of a debt ceiling crisis.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 22, 2023

   Mr. Braun introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To rescind discretionary appropriations in the event of a debt ceiling 
 crisis period and to honor the full faith and credit of the debts of 
        the United States in the event of a debt ceiling crisis.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Default Act''.

SEC. 2. RESCISSION OF DISCRETIONARY SPENDING AND HONORING DEBTS DURING 
              A DEBT CEILING CRISIS.

    (a) Definitions.--In this section:
            (1) Current fiscal year.--The term ``current fiscal year'' 
        means the fiscal year during which the applicable rescission of 
        discretionary appropriations under subsection (b) occurs.
            (2) Debt ceiling crisis period.--The term ``debt ceiling 
        crisis period'' means a period--
                    (A) beginning on the date on which, but for 
                subsection (c), the Secretary of the Treasury would not 
                be able to issue obligations under chapter 31 of title 
                31, United States Code, or other obligations whose 
                principal and interest are guaranteed by the United 
                States Government, because of the limit on the face 
                amount of such obligations that may be outstanding at 
                one time under section 3101(b) of title 31, United 
                States Code; and
                    (B) ending on the date on which the first measure 
                suspending or increasing the limit under section 
                3101(b) of title 31, United States Code, is enacted 
                into law after the date described in subparagraph (A).
            (3) Discretionary appropriations.--The term ``discretionary 
        appropriations'' has the meaning given such term in section 
        250(c) of the Balanced Budget and Emergency Deficit Control Act 
        of 1985 (2 U.S.C. 900(c)).
    (b) Rescission of Discretionary Spending.--For each discretionary 
appropriations account, effective on the first day of a debt ceiling 
crisis period, and every 30 days thereafter until the end of the debt 
ceiling crisis period, 1 percent of the amount provided for the 
discretionary appropriations account under the appropriation Act for 
the current fiscal year is permanently rescinded.
    (c) Temporary Suspension of Debt Ceiling.--
            (1) In general.--Section 3101(b) of title 31, United States 
        Code, shall not apply for the period--
                    (A) beginning on the first day of a debt ceiling 
                crisis period; and
                    (B) ending on the last day of the debt ceiling 
                crisis period.
            (2) Special rule relating to obligations issued during 
        extension period.--Effective on the last day of a debt ceiling 
        crisis period, the limitation in effect under section 3101(b) 
        of title 31, United States Code, shall be increased to the 
        extent that--
                    (A) the face amount of obligations issued under 
                chapter 31 of such title and the face amount of 
                obligations whose principal and interest are guaranteed 
                by the United States Government (except guaranteed 
                obligations held by the Secretary of the Treasury) 
                outstanding on the first day of the debt ceiling crisis 
                period; exceeds
                    (B) the face amount of such obligations outstanding 
                on the last day of the debt ceiling crisis period.
            (3) Extension limited to necessary obligations.--An 
        obligation shall not be taken into account under paragraph 
        (2)(A) unless the issuance of such obligation was necessary to 
        fund a commitment incurred pursuant to law by the Federal 
        Government that required payment on or before the last day of 
        the applicable debt ceiling crisis period.
    (d) Reports.--
            (1) In general.--Not later than 30 days after the first day 
        of a debt ceiling crisis period, and every 30 days thereafter 
        until the date that is 30 days after the end of the debt 
        ceiling crisis period, the Director of the Office of Management 
        and Budget shall submit to Congress a report detailing the 
        rescission of discretionary appropriations under subsection (b) 
        with respect to the debt ceiling crisis period.
            (2) Review by gao.--Not later than 90 days after the date 
        on which the Director of the Office of Management and Budget 
        submits each report under paragraph (1), the Comptroller 
        General of the United States shall submit to Congress a report 
        evaluating the description of the rescission of discretionary 
        appropriations in the report by the Director of the Office of 
        Management and Budget.
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