FOR IMMEDIATE RELEASE:
February 28, 2019
Contact: Press@paul.senate.gov, 202-224-4343
WASHINGTON, D.C. – Today, U.S. Senator Rand Paul (R-KY) reintroduced his Default Prevention Act, which prevents a default whenever the United States has reached the national debt limit and prioritizes spending as revenue comes in.
As part of the budget-busting spending deal reached by leaders of both parties in February 2018, Congress again kicked the can down the road, suspending the debt limit until March 2019. This Saturday, March 2, our government will hit the reinstituted ceiling, as trillion-dollar deficits loom and less than a month after the national debt crossed the $22 trillion mark.
“Once again, Washington’s bipartisan spending addiction has been exposed. Despite the debt’s added burdens on Americans and clear threat to our national security, politicians will attempt to use the threat of default to dodge accountability and a legitimate debate on fiscal responsibility. My plan removes that excuse while ensuring we honor our obligations,” said Dr. Paul.
While our government will rely on the U.S. Treasury to use budgeting gimmicks to further delay action until later in the year, Congress still faces a choice: either rein in its out-of-control spending or continue digging the American people deeper into debt.
Dr. Paul’s Default Prevention Act offers a responsible way forward for the debt ceiling debate.
• Gives debt service, military pay and benefits, Social Security, Medicare payments, and Veterans’ Benefits priority over other spending as revenue comes in.
• Allows the U.S. Treasury to obtain temporary bridge loans (30 days or less) solely to meet these obligations if daily revenue is insufficient at the time payments are due. This ensures payments are made on time while preventing the net debt position of the United States from exceeding the statutory debt limit on a month-to-month basis.
You can read the entire bill here.