For several years, Washington politicians have used our Nation's debt limit to play costly political games. Today, Congressman Robert Pittenger (NC-09) voted to take away that political football, protecting hardworking Americans from politically-motivated economic turmoil.
"Too often, President Obama and other Washington politicians have used the threat of default to force more wasteful spending on hardworking American families," said Congressman Pittenger. "Threatening default is irresponsible, as it causes market instability, leading to fewer jobs and smaller retirement accounts for the middle-class."
The Full Faith and Credit Act (HR 807) requires the U.S. Treasury to make good on debt payments, including money owed the Social Security Trust Fund. The legislation does not raise the debt limit, but prevents default by ensuring the federal government continues to make required payments on existing debt.
If the debt limit is reached, this legislation authorizes the Treasury Department to borrow just enough money to make required interest payments and avoid default. No additional borrowing would be allowed without additional Congressional approval to raise the debt limit.
The Full Faith and Credit Act was approved this morning by the U.S. House of Representatives by a vote of 221-207.