NTU urges all Representatives to vote “YES” on H.R. 692, the “Default Prevention Act.” This legislation would eliminate the potential of a default on U.S. debt obligations and ensure stability in financial markets in the event that Congress does not raise the debt ceiling in a timely manner.
The Default Prevention Act would simply allow the Treasury Department to continue borrowing in order to make principal and interest payments on debt held by the public and on Social Security’s so-called trust funds, ensuring that all creditors are paid in full and on time. The legislation also prohibits the Treasury from making payments to Members of Congress in the absence of legislative action on the debt limit.
H.R. 692 provides a necessary fail-safe ensuring the full faith and credit of the United States is not squandered on behalf of political posturing. Removing the possibility of default sends an important message to our creditors, who include investors and pension funds, and prevents further disruption to already volatile credit markets.
With over $18 billion in debt, it’s essential that Congress makes the tough decisions necessary to rein in our out of control expenditures, especially the crushing load of entitlement spending, that are creating a drag on our economy and threatens our future prosperity. By prioritizing certain payments H.R. 692 eliminates the threat of crisis as well as the potential to manipulate debt ceiling increases for political gamesmanship.
Roll call votes on H.R. 692 will be included in our annual Rating of Congress and a “Yes” vote will be considered the pro-taxpayer position.
If you have any questions, please contact NTU Federal Affairs Manager Nan Swift at (703) 683-5700