1. Short title
This Act may be cited as the “Default Prevention Act”.
Default Prevention Act
A BILL
To provide guidance and priorities for Federal Government obligations in the event that the debt limit is reached.
2. Prioritizing obligations
In the event that the debt of the United States Government reaches the statutory level as defined in section 3101 of title 31, United States Code, the following expenditures shall be granted priority over all other obligations incurred by the United States Government:
The authority of the Department of Treasury provided in section 3123 of title 31, United States Code, to pay with legal tender the principal and interest on debt held by the public.
The full payment of compensation, allowances, and benefits for members of the Armed Forces on active duty.
The authority of the Commissioner of Social Security to pay monthly old-age survivors’ and disability insurance benefits under title II of the Social Security Act.
The authority of the Secretary of Health and Human Services to make payments for items and services furnished to beneficiaries under the Medicare program under title XVIII of the Social Security Act and related provisions.