WASHINGTON. D.C. – Congressman Andy Barr released the following statement upon passage of H.R. 807, the Full Faith and Credit Act:
“We must work to reduce the growing burden of our debt and deficits, but we must do so without imposing more tax increases on hardworking families and job creators. This legislation takes the threat of defaulting on our debt 100 percent off the table and encourages long-term spending reform in Washington by requiring the President and his administration to set priorities, just like hard working Kentucky families do every day.”
In the event the federal debt limit is reached, H.R. 807 would allow the United States Treasury to issue debt solely to pay principal and interest on the debt. This would include interest owed to the Social Security Trust Funds, which ensures that Social Security benefits will be paid in a timely manner and in full. Additionally, the legislation would require the Treasury to provide a weekly report to the House and Senate outlining the exempted transactions until a new debt limit is enacted. The effect of this legislation is that it would remove the threat of default on U.S. debt obligations.