Default Prevention Act ensures payment of U.S. debt obligations.
The Default Prevention Act mandates the Secretary of the Treasury to prioritize payments on U.S. debt obligations when the national debt limit is reached. It defines Tier I obligations as principal and interest on debt held by the public and trust funds, and Tier II obligations as Department of Defense and veterans' benefits. Tier III obligations include all other U.S. obligations, Tier IV obligations include federal employee compensation and executive branch travel expenses, and Tier V obligations include congressional compensation.
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- Core Provisions
- Implementation
- Impact
- Legal Framework
- Critical Issues
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