This bill adds a new section to federal law that requires the Secretary of the Treasury to appear before two congressional committees before the government reaches the statutory debt limit or before taking so-called "extraordinary measures" to avoid a default. The Secretary must appear not more than 60 days and not less than 21 days before the date when the Secretary expects the debt limit will be reached or extraordinary measures will be used. At that appearance the Secretary must give a detailed explanation of (1) which extraordinary measures will be used and an estimate of the administrative cost of those measures, and (2) how those measures would be reversed and any other changes to how federal obligations are funded if the debt limit is raised. The bill lists specific actions that qualify as "extraordinary measures," including suspending sales of certain Treasury securities, redeeming or suspending investments from the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund, suspending reinvestment in several government funds, directing Federal Financing Bank debt for exchange transactions, and selling or redeeming certain invested assets before maturity.
If enacted, the Treasury Secretary would have to give a formal briefing to the House Ways and Means Committee and the Senate Finance Committee between 21 and 60 days before a predicted debt-limit event or before using extraordinary measures. The briefing must explain which measures the Treasury will use, estimate administrative costs for those measures, and describe how funding would change if the debt limit is raised.
The bill requires the Secretary to provide an estimate of the administrative cost of any extraordinary measures the Treasury plans to take. No publicly available information on other costs or budget effects of the bill itself.
No publicly available information.
No publicly available information.