Congressman Gary Palmer (R-AL), a member of the House Budget Committee, is a cosponsor of H.R. 692, the Default Prevention Act. Introduced by Rep. Tom McClintock (R-CA), the bill passed the House today by a vote of 235 to 194. This bill would ensure that the debt of the United States is always paid, and default is always avoided, by ensuring that the Treasury can always borrow for the sole purpose of paying the principal and interest on the debt held by the public, or the Social Security Trust Fund.
"The federal government needs to get its fiscal house in order," Palmer said. "Instead, for far too long, we have simply lifted the debt ceiling every time it has gotten in the way of more spending, because the specter of defaulting on our sovereign debt and Social Security recipients not being paid hamper attempts to change our spending habits. This bill would ensure that those obligations are always covered, while not allowing the threat of default to hamstring those who are not inclined to lift the debt ceiling without serious reforms."