Default Prevention Act

The Default Prevention Act (HR 187) requires the Treasury to pay interest and principal on U.S. debt held by the public and Social Security trust funds (including Old-Age and Survivors Insurance and Disability Insurance Trust Funds) if the national debt limit is reached. To do this, the Treasury would issue special obligations exempt from the debt ceiling, meaning they wouldn’t count toward the limit, and these funds couldn’t be used to pay Congress members’ salaries. The bill mandates weekly reports to the House Ways and Means and Senate Finance Committees detailing payments made and obligations issued. This mechanism aims to prevent a government default on critical debt obligations without altering the statutory debt limit.