S2168-118

1. Short title This Act may be cited as the No Default Act.

2. Rescission of discretionary spending and honoring debts during a debt ceiling crisis In this section: The term current fiscal year means the fiscal year during which the applicable rescission of discretionary appropriations under subsection (b) occurs. The term debt ceiling crisis period means a period— beginning on the date on which, but for subsection (c), the Secretary of the Treasury would not be able to issue obligations under chapter 31 of title 31, United States Code, or other obligations whose principal and interest are guaranteed by the United States Government, because of the limit on the face amount of such obligations that may be outstanding at one time under section 3101(b) of title 31, United States Code; and ending on the date on which the first measure suspending or increasing the limit under section 3101(b) of title 31, United States Code, is enacted into law after the date described in subparagraph (A). The term discretionary appropriations has the meaning given such term in section 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c)). For each discretionary appropriations account, effective on the first day of a debt ceiling crisis period, and every 30 days thereafter until the end of the debt ceiling crisis period, 1 percent of the amount provided for the discretionary appropriations account under the appropriation Act for the current fiscal year is permanently rescinded. Section 3101(b) of title 31, United States Code, shall not apply for the period— beginning on the first day of a debt ceiling crisis period; and ending on the last day of the debt ceiling crisis period. Effective on the last day of a debt ceiling crisis period, the limitation in effect under section 3101(b) of title 31, United States Code, shall be increased to the extent that— the face amount of obligations issued under chapter 31 of such title and the face amount of obligations whose principal and interest are guaranteed by the United States Government (except guaranteed obligations held by the Secretary of the Treasury) outstanding on the first day of the debt ceiling crisis period; exceeds the face amount of such obligations outstanding on the last day of the debt ceiling crisis period. An obligation shall not be taken into account under paragraph (2)(A) unless the issuance of such obligation was necessary to fund a commitment incurred pursuant to law by the Federal Government that required payment on or before the last day of the applicable debt ceiling crisis period. Not later than 30 days after the first day of a debt ceiling crisis period, and every 30 days thereafter until the date that is 30 days after the end of the debt ceiling crisis period, the Director of the Office of Management and Budget shall submit to Congress a report detailing the rescission of discretionary appropriations under subsection (b) with respect to the debt ceiling crisis period. Not later than 90 days after the date on which the Director of the Office of Management and Budget submits each report under paragraph (1), the Comptroller General of the United States shall submit to Congress a report evaluating the description of the rescission of discretionary appropriations in the report by the Director of the Office of Management and Budget.