Gallego Authors "Pay America First Act"

Press Release

Congressman Pete P. Gallego (TX-23) today authored the "Pay America First Act" to protect Americans in case of a default. The bill would prioritize America's seniors, veterans, and other domestic payments, over foreign bondholders.

"My legislation is an insurance policy for the American people," said Congressman Pete Gallego (TX-23). "If the obstructionists in Congress succeed in their efforts to bring on government default, we must prioritize the needs of Americans over those of foreign bondholders. We have obligations to our seniors, Veterans and active duty military that should be met first.

Congress should ensure that we have a process that puts America's interests ahead of foreign interests."

Background

- Nearly 4 million disabled veterans could lose their monthly payments in case of a default.
- 299,877 Texas veterans currently receive disability compensation.
- 3,657,907 Texans rely on their earned Social Security benefits.
- 4,473,000 Texans with employer retirement plans could lose between $15,000 and $37,000.

Key Dates on payments due from the U.S.

- Oct 17th: The US Treasury will have just $30B in cash left, limiting its ability to pay the government bills beyond Oct 22nd without the authority to borrow more money.
- Oct 23rd: $12B social security payments are due that day.
- Oct 28th: $3B in federal employee salaries are payments due that day.
- Oct 30th: $2B in Medicaid providers payments are due that day.
- Oct 31st: $6B interest on public debt payment is due that day.
- Nov 1st (absolute last day to exhaust any remaining reserves, revenue, cash on hand): $3B in Supplemental Security income benefit; $12B military active pay, retirement and veterans benefits; $18B Medicare payment to providers and private plans; $25B social security benefits -- payments due that day.

Source