Sens. Cruz, Scott, Toomey Introduce Full Faith and Credit Act to Address Federal Debt Crisis
WASHINGTON, D.C. - U.S. Sens. Ted Cruz (R-Texas), Rick Scott (R-Fla.), Pat Toomey (R-Pa.) Thom Tillis (R-N.C.), Ron Johnson (R-Wis.), Mike Braun (R-Ind.), Bill Hagerty (R-Tenn.), Kevin Cramer (R-N.D.), Shelley Moore Capito (R-W.Va.), Marco Rubio (R-Fla.), John Barrasso (R-Wyo.), and John Hoeven (R-N.D.) today introduced the Full Faith and Credit Act to ensure the federal government prioritizes funding for our military, veterans and seniors should the federal debt ceiling be reached with no action from Democrats to raise or suspend it.
Upon introduction, Sen. Cruz said:
"The out-of-control partisan wish list spending being pushed by Nancy Pelosi, Chuck Schumer, and President Biden threatens to bankrupt future generations. Under no circumstances should the Democrats allow the United States to default on our debt. If they refuse to take responsibility for their reckless spending, our bill would ensure we avoid default and continue payments to seniors, active duty service members, and veterans - who bear the brunt of the rising inflation caused by Democrats' fiscal insanity."
Sen. Scott said:
"Washington's reckless spending is completely out of control. The United States is nearing $30 trillion in debt and Democrats are pushing a radical, socialist tax-and-spending agenda that will push us to an unimaginable $45 trillion. Too many in Washington have accepted deficit spending, blank checks, tax hikes and skyrocketing inflation as the status quo. We need to be clear: there will be a day of reckoning for this and unfortunately American families will pay the price. It's time for Congress to take significant action to put our nation back on a path of economic success. I did it in Florida and we can do it in Washington.
"Our bill, the Full Faith and Credit Act, would require the U.S. government to fulfill critical payments to the debt to avoid default and full fiscal calamity if Democrats refuse to take accountability for their wasteful spending and address the debt ceiling. It also ensures Americans depending on Social Security, Medicare, veteran benefits, as well as our service members, are not punished for Washington's dysfunction. I want to thank my friend and colleague, Senator Pat Toomey, for previously introducing this bill and allowing me the opportunity to lead this effort with him at this critical moment. It's time for Washington to start living within its means, just like every family and business across the nation does, and preserve the American dream-this bill is a great start."
Sen. Toomey said:
"Democrats want Republicans to be complicit in their irresponsible, unprecedented, and out-of-control spending spree by pushing us to authorize the massive borrowing necessary to fund their $3.5 trillion wish list. If they insist on going down this partisan path, Democrats should take full responsibility and use the procedural tools available to them to raise the debt ceiling alone.
"Senator Rick Scott's legislation would simply prevent Democrats from taking the full faith and credit of the U.S. hostage and ensure we make timely payments to our creditors, seniors, veterans, and the active duty military until they stop playing politics."
Sen. Tillis said:
"Congressional Democrats have had no problem pursuing a reckless tax and spending spree on a partisan basis, and they should no problem raising the debt ceiling on a partisan basis. With Congressional Democrats looking intent to manufacture a crisis by refusing to take any responsibility for their out-of-control spending, we need to have a plan in place to prioritize our military, veterans, and seniors so they are not left without proper financial assistance. This commonsense legislation puts sound and responsible measures in place so we can properly plan for the future."
Sen. Barrasso said:
"Republicans will not be a rubber stamp for Democrats' reckless spending spree that will jeopardize the benefits of hard-working Americans. This bill is an important step to prioritize payments to our seniors, military, and veterans while ensuring the government does not default on the debt. When the full faith and credit of the United States is called into question, look no further than President Biden's White House and the Democrats."
Sen. Rubio said:
"Democrats are attempting to fundamentally remake America through massive, debt-fueled spending. We cannot afford to gamble with the full faith and credit of the United States Government simply because Democrats want a blank check for their reckless agenda. Instead, we need to pass the Full Faith and Credit Act and begin to rein in our mounting debt crisis."
Sen. Johnson said:
"Washington spending is out of control, with Democrats wanting to add trillions more to our growing debt. Inflation is wiping out wage gains, and Democrats want to suspend the debt ceiling without enacting any fiscal controls. I'm happy to co-sponsor Sen. Scott and Sen. Toomey's Full Faith and Credit Act that ensures the federal government does not default on its debt and would prioritize spending to protect the men and women in our military and those reliant on Social Security, Medicare, and veteran benefits."
Sen. Braun said:
"Democrats want a blank check to spend trillions of dollars radically reshaping Americans' relationship to our government, and I'm glad Republicans are not going to enable their spending spree by voting to raise the debt limit. The Full Faith and Credit Act will ensure that the government does not default if Democrats refuse to own up to their own reckless spending."
Sen. Hagerty said:
"All Democrats have done this year is spend on a partisan basis, and they want to pass another $3.5 trillion spending spree-the socialist debt bomb-that puts the United States in an even more precarious fiscal situation. If Democrats push America to the debt limit, it is essential that we prioritize funding for our military, veterans, and seniors, which is what Senator Scott's bill will do, and I am pleased to support. Washington Democrats must change course before it's too late."
Sen. Cramer said:
"As Democrats set their sights on adding trillions of dollars to our national debt with their reckless spending package, they are asking Republicans to help green light their agenda by increasing the debt limit. Our bill would ensure that if Democrats exceed the debt limit and Washington is forced to cut back, critical funding for seniors, veterans, and service members will be prioritized."
Sen. Capito said:
"Every West Virginia family and business has to live within its means and our federal government shouldn't be any different. This commonsense bill would require accountability for Washington's reckless spending and finally begin to address our nation's debt. Importantly, the Full Faith and Credit Act would also protect our veterans, service members, seniors, and those enrolled in Medicare from having their benefits affected by a potential default on the federal government's debt."
Sen. Hoeven added:
"We owe it to the American taxpayer to use the regular appropriations process to cut waste and reduce federal spending. Rather than rubber stamping a raising of the debt ceiling at a time when Democrats continue to push forward with plans to spend trillions more in taxpayer dollars, the Full Faith and Credit Act will help ensure the federal government does not default on its debt while making sure that critical programs remain funded without delay."
The Full Faith and Credit Act would:
Require the following to take priority over all other federally incurred obligations in the event that the federal debt reaches the debt ceiling:
- The Department of the Treasury to pay the principal and interest on debt held by the public;
- Social Security payments toward monthly Old Age, Survivors and Disability Insurance benefits under title II of the Social Security Act;
- Pay and allowances for members of the Armed Forces on active duty and the United States Coast Guard;
- Payment of compensation and pensions and medical services provided by the United States Department of Veterans Affairs; and
- Medicare programs.
Requires the Secretary of the Treasury, if the Secretary determines that incoming revenue will not be sufficient to finance the priorities described above over the following two weeks, to:
- Notify Congress of the expected revenue shortfall; and
- Raise the debt limit by the amount necessary to cover the difference between incoming revenue and the revenue needed to finance such priorities on a two-week basis.
- Prohibit such a debt limit increase from exceeding the difference between expected outlays for the listed priorities and expected revenue.