In an effort to protect millions of Americans in the event the government reaches and does not raise the debt ceiling, the House today passed legislation, co-sponsored by U.S. Rep. Blaine Luetkemeyer (MO-3), directing the U.S. Treasury to pay principal and interest due on debt held by the public before making any other payments. 
 
“We have to make it clear to the American people and the global economy that the U.S. will not default on a debt payment. The Full Faith and Credit Act will help ensure against default by requiring the Secretary of the Treasury to prioritize payments on the debt,” Luetkemeyer said. “This legislation requires the federal government to prioritize paying interest and principal costs on the public debt with existing revenue. By doing so, this bill will prevent the United States from defaulting on its debt held by American citizens and pension funds that together own a significant amount of U.S. Treasury securities. Without prioritization of payments, Americans who offered both faith and investment in their government could face catastrophic losses.”
 
This bill, in the event that the debt ceiling is not raised, would take a United States default off the table by requiring Treasury to pay the debt payments; defines “interest” in a way that requires the Treasury to make the interest payments necessary to ensure that Social Security benefits are paid in full; and requires the Treasury Secretary to provide a weekly accounting to congressional committees of the amount of principle and interest due and amount of debt issued.