February 12, 2015 - Washington, D.C. - Congressman McClintock (CA-04) has introduced H.R. 692 (The Default Prevention Act). The legislation guarantees the sovereign debt of the United States Government will be paid in full and on time, under any circumstances -- even total political gridlock. The legislation was introduced with 43 co-sponsors.
If the debt limit is reached, under H.R. 692, the Treasury Secretary may continue to borrow above the limit for the sole purpose of paying principal and interest due on the debt, thereby guaranteeing the debt of the United States is honored.
The clear and unambiguous mandate to protect the nation’s credit first will result in the ability of the government to continue to pay its other bills. American investors are protected in the legislation, as more than half of the nation’s debt is held by Americans, often in pension funds.
A similar act authored by the Congressman passed the House in the last Congress (the 113th), but was never taken up by the Senate.
For more information: HR 692
