H.R. 421 the Full Faith and Credit Act. FULL TEXT

RSC Members Introduce Bill to Prevent a Default on the Debt Washington, Jan 26 - Bill Summary & Status 112th Congress (2011 - 2012) H.R.421 FULL TEXT.

Led by Rep. Tom McClintock (R-CA), Republican Study Committee Chairman Jim Jordan (R-OH), Rep. Virginia Foxx (R-NC), and Rep. Scott Garrett (R-NJ), RSC members have introduced H.R. 421, the Full Faith and Credit Act. In the event the statutory debt ceiling is reached, this legislation would direct the United States Treasury to prevent a default by paying principal and interest due on debt held by the public before making any other payments. The bill has also been introduced in the Senate by Sen. Pat Toomey (R-PA).

“The ‘full faith and credit’ of the United States should not hang in the balance on every adjustment to the national debt limit,” said Rep. McClintock. “States protect their credit by pledging first call on revenues to their debts and so should the federal government. After all, before you can ‘provide for the common defense, promote the general welfare and secure the blessings of liberty,’ you have to be able to finance them.”

“A pitiful scare tactic already being used by the Treasury Secretary in the debt ceiling debate is the threat of allowing the federal government to default on its obligations,” said Chairman Jordan. “This is government mismanagement at its worst. Secretary Geithner knows full well that he has the authority to prioritize federal spending so that default is not an option. This bill will take Secretary Geithner’s disastrous scenario completely off the table.”

“America's sterling credit rating is vital to our future prosperity,” said Rep. Foxx. “This bill offers a simple safeguard to protect our credit and prevent a sovereign debt crisis. It's the sort of common sense solution that we can easily put in place without wading into the debate over raising the debt ceiling.”

“This important piece of legislation ensures America’s debt rating and the threat of default on our debt cannot be used as political weapons. This bill will remind the markets and the world that America will never default on its debt while giving Congress time to have a meaningful, reasonable discussion about how to rein in out-of-control spending and prevent our country from sliding further into debt,” remarked Rep. Garrett. ###

Congressman Jim Jordan is Chairman of the Republican Study Committee (RSC).

Bill Summary & Status 112th Congress (2011 - 2012) H.R.421 FULL TEXT

TEXT and IMAGE CREDIT: Republican Study Committee (RSC) - The Caucus of House Conservatives: FOR IMMEDIATE RELEASE 1.26.2011