Default Prevention Act

# Default Prevention Act (HR 182) Summary **What the Bill Would Do** The Default Prevention Act would give the federal government tools to prioritize which bills to pay if the nation reaches its debt ceiling and cannot borrow more money. Specifically, it would allow the Treasury Department to continue paying certain obligations—like Social Security, Medicare, military salaries, and interest on the national debt—even if the government runs out of cash and cannot pay all its bills at once. This is meant to prevent an actual financial "default" where the U.S. fails to pay its obligations. **Who It Affects and Key Provisions** The bill would primarily affect seniors relying on Social Security, Medicare recipients, disabled individuals receiving benefits, active military members, and creditors holding U.S.

debt. By prioritizing these payments, the bill essentially protects them from potential cuts during a debt-ceiling crisis, though other government programs and services would face uncertainty about payment. The measure aims to prevent the economic disruption that could occur if critical payments weren't made. **Current Status** HR 182 is currently in committee and has not advanced to a full congressional vote. The bill was introduced in the 119th Congress by Republican Tom McClintock of California.