The United States House of Representatives will soon consider H.R. 692, the “Default Prevention Act” introduced by Congressman Tom McClintock (R-CA). This important legislation protects the full faith and credit of the United States by guaranteeing that the Treasury department will continue paying off debt in the event the debt ceiling is reached. ATR supports the Default Prevention Act and urges all members of Congress to vote for this legislation.
Currently, if the debt ceiling is reached the United States Treasury is unable to continue making payments to its debtors. Unfortunately, in recent years this has led to politicians threatening default as a political tactic to evade seriously addressing the nation’s fiscal crisis.
H.R. 692 will put a stop to this by ensuring that Treasury can continue to borrow above the set limit to pay principal and interest due on the debt under the event the debt ceiling is reached.
By removing the threat of default, this legislation encourages stakeholders to engage in a reasoned and productive conversation to rein in the nation’s debt.
ATR urges all members of Congress to vote for this legislation and protect the full faith and credit of the United States.