No Default Act

S 2168, the "No Default Act," automatically implements spending cuts and suspends the debt ceiling during a defined debt crisis period to prevent the U.S. from defaulting on obligations. During such a crisis (when the Treasury cannot issue new debt due to the ceiling), it permanently cuts 1% of each federal agency's discretionary spending account every 30 days until the crisis ends. The bill also temporarily suspends the debt ceiling limit for the duration of the crisis and requires the Office of Management Budget to report on the cuts to Congress every 30 days, with the GAO reviewing these reports within 90 days. This directly affects federal programs funded through discretionary appropriations (like defense, education, and infrastructure) by mandating automatic reductions during debt ceiling standoffs.