119-s2405

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2405 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2405

To provide a process for ensuring the United States does not default on 
 its obligations.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 July 23, 2025

 Mr. Merkley (for himself, Mr. Durbin, and Mr. Kaine) introduced the 
 following bill; which was read twice and referred to the Committee on 
 Finance

_______________________________________________________________________

 A BILL

To provide a process for ensuring the United States does not default on 
 its obligations.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Debt Ceiling Reform Act''.

SEC. 2. SUSPENSION OF THE DEBT CEILING.

    (a) In General.--

    (1) Amendments.--Subchapter I of chapter 31 of subtitle III 
 of title 31, United States Code, is amended--
        (A) in 

section 3101

    (b) , by inserting ``or 3101B'' 
 after ``

section 3101A''; and
        (B) by inserting after 

section 3101A the following:
``

Sec. 3101B. Suspension of the debt ceiling
 ``

    (a) 

=== Definition. ===
-In this section, the term `joint resolution' 
means only a joint resolution--
 ``

    (1) that is introduced during the period--
 ``
        (A) beginning on the date a certification 
 described in subsection

    (b)

    (1) is received by Congress; 
 and
 ``
        (B) ending on the date that is 45 calendar days 
 after the date described in subparagraph
        (A) ;
 ``

    (2) which does not have a preamble;
 ``

    (3) the title of which is only as follows: `Joint 
 resolution relating to the disapproval of the Secretary of the 
 Treasury's exercise of authority to suspend the debt limit, as 
 submitted under 

section 3101B of title 31, United States Code, 
 on ______' (with the blank containing the date of such 
 submission); and
 ``

    (4) the matter after the resolving clause of which is 
 only as follows: `That Congress disapproves of the Secretary of 
 the Treasury's exercise of authority to suspend the debt limit, 
 as exercised pursuant to the certification submitted under 
 

section 3101B

    (b)

    (1) of title 31, United States Code, on 
 ______.' (with the blank containing the date of such 
 submission).
 ``

    (b) Submissions to Congress.--
 ``

    (1) In general.--Not earlier than 60 days, and not later 
 than 46 days, before last day of a suspension of the limit 
 under 

section 3101

    (b) under this section, or any other 
 provision of law, if the Secretary of the Treasury determines 
 that further borrowing will be necessary to meet existing 
 commitments after the end of such suspension, the Secretary of 
 the Treasury shall submit to Congress a written certification 
 specifying the end of the period during which such limit should 
 be suspended, which shall be not later than 2 years after the 
 otherwise applicable end of the period of the suspension of the 
 limit under 

section 3101

    (b) .
 ``

    (2) Effect of failure to enact disapproval.--
 ``
        (A) In general.--If a joint resolution is not 
 enacted with respect to a certification under paragraph

    (1) during the 45-calendar-day period beginning on the 
 date on which Congress receives the certification, 
 

section 3101

    (b) shall not apply for the period--
 ``
            (i) beginning on the date that is 46 
 calendar days after the date on which Congress 
 receives the certification; and
 ``
            (ii) ending on the date specified by the 
 Secretary of the Treasury in the certification.
 ``
        (B) Special rule relating to obligations issued 
 during extension period.--If a suspension of the limit 
 under 

section 3101

    (b) takes effect under subparagraph
        (A) of this paragraph, effective on the day after the 
 date specified by the Secretary of the Treasury in the 
 applicable certification, the limitation in effect 
 under 

section 3101

    (b) shall be increased to the extent 
 that--
 ``
            (i) the face amount of obligations issued 
 under this chapter and the face amount of 
 obligations whose principal and interest are 
 guaranteed by the United States Government 
 (except guaranteed obligations held by the 
 Secretary of the Treasury) outstanding on the 
 day after the date specified by the Secretary 
 of the Treasury in the certification; exceeds
 ``
            (ii) the face amount of such obligations 
 outstanding on the day after the most recent 
 day during which the limit under 

section 3101

    (b) was not suspended under this section, 
 or any other provision of law.
 ``
            (C) Restoring congressional authority over the 
 national debt.--
 ``
            (i) Extension limited to necessary 
 obligations.--An obligation shall not be taken 
 into account under subparagraph
        (B)
            (i) unless 
 the issuance of such obligation was necessary 
 to fund a commitment incurred pursuant to law 
 by the Federal Government that required payment 
 before the day after the date specified by the 
 Secretary of the Treasury in the certification.
 ``
            (ii) Prohibition on creation of cash 
 reserve during extension period.--The Secretary 
 of the Treasury shall not issue obligations 
 during the period specified in subparagraph
        (A) for the purpose of increasing the cash balance 
 above normal operating balances in anticipation 
 of the expiration of such period.
 ``

    (3) Effect of enactment of disapproval.--If a joint 
 resolution is enacted with respect to a certification under 
 paragraph

    (1) during the 45-calendar-day period beginning on 
 the date on which Congress receives the certification, the 
 suspension of the limit under 

section 3101

    (b) described in such 
 paragraph

    (1) shall end as otherwise provided by law.
 ``
            (c) Expedited Consideration in House of Representatives.--
 ``

    (1) Reporting and discharge.--Any committee of the House 
 of Representatives to which a joint resolution is referred 
 shall report it to the House of Representatives without 
 amendment not later than 5 calendar days after the date of 
 introduction of the joint resolution. If a committee fails to 
 report the joint resolution within that period, the committee 
 shall be discharged from further consideration of the joint 
 resolution and the joint resolution shall be referred to the 
 appropriate calendar.
 ``

    (2) Proceeding to consideration.--After each committee 
 authorized to consider a joint resolution reports it to the 
 House of Representatives or has been discharged from its 
 consideration, it shall be in order, not later than the sixth 
 day after introduction of the joint resolution, to move to 
 proceed to consider the joint resolution in the House of 
 Representatives. All points of order against the motion are 
 waived. Such a motion shall not be in order after the House of 
 Representatives has disposed of a motion to proceed on a joint 
 resolution addressing a particular submission. The previous 
 question shall be considered as ordered on the motion to its 
 adoption without intervening motion. The motion shall not be 
 debatable. A motion to reconsider the vote by which the motion 
 is disposed of shall not be in order.
 ``

    (3) Consideration.--The joint resolution shall be 
 considered as read. All points of order against the joint 
 resolution and against its consideration are waived. The 
 previous question shall be considered as ordered on the joint 
 resolution to its passage without intervening motion except 2 
 hours of debate equally divided and controlled by the proponent 
 and an opponent. An amendment to the joint resolution or a 
 motion to reconsider the vote on passage of the joint 
 resolution shall not be in order.
 ``
            (d) Expedited Procedure in Senate.--
 ``

    (1) Placement on calendar.--Upon introduction in the 
 Senate, a joint resolution shall be immediately placed on the 
 calendar.
 ``

    (2) Floor consideration.--
 ``
        (A) In general.--Notwithstanding rule XXII of the 
 Standing Rules of the Senate, it is in order at any 
 time during the period beginning on the day after the 
 date on which Congress receives a certification under 
 subsection

    (b)

    (1) and ending on the date that is 45 
 calendar days after the date on which the applicable 
 certification described in subsection

    (b)

    (1) is 
 received by Congress (even though a previous motion to 
 the same effect has been disagreed to) to move to 
 proceed to the consideration of the joint resolution, 
 and all points of order against the joint resolution 
 (and against consideration of the joint resolution) are 
 waived. The motion to proceed is not debatable. The 
 motion is not subject to a motion to postpone. A motion 
 to reconsider the vote by which the motion is agreed to 
 or disagreed to shall not be in order. If a motion to 
 proceed to the consideration of the resolution is 
 agreed to, the joint resolution shall remain the 
 unfinished business until disposed of.
 ``
        (B) Consideration.--Consideration of the joint 
 resolution, and on all debatable motions and appeals in 
 connection therewith, shall be limited to not more than 
 10 hours, which shall be divided equally between the 
 majority and minority leaders or their designees. A 
 motion further to limit debate is in order and not 
 debatable. An amendment to, or a motion to postpone, or 
 a motion to proceed to the consideration of other 
 business, or a motion to recommit the joint resolution 
 is not in order.
 ``
            (C) Vote on passage.--If the Senate has voted to 
 proceed to a joint resolution, the vote on passage of 
 the joint resolution shall occur immediately following 
 the conclusion of consideration of the joint 
 resolution, and a single quorum call at the conclusion 
 of the debate if requested in accordance with the rules 
 of the Senate.
 ``
            (D) Rulings of the chair on procedure.--Appeals 
 from the decisions of the Chair relating to the 
 application of the rules of the Senate to the procedure 
 relating to a joint resolution shall be decided without 
 debate.
 ``

    (e) Coordination With Action by Other House.--
 ``

    (1) In general.--If, before passing the joint resolution, 
 one House receives from the other a joint resolution--
 ``
        (A) the joint resolution of the other House shall 
 not be referred to a committee; and
 ``
        (B) the procedure in the receiving House shall be 
 the same as if no joint resolution had been received 
 from the other House, except that the vote on final 
 passage shall be on the joint resolution of the other 
 House.
 ``

    (2) Treatment of joint resolution of other house.--If the 
 Senate fails to introduce or consider a joint resolution under 
 this section, the joint resolution of the House shall be 
 entitled to expedited floor procedures under this section.
 ``

    (3) Treatment of companion measures.--If, following 
 passage of the joint resolution in the Senate, the Senate 
 receives the companion measure from the House of 
 Representatives, the companion measure shall not be debatable.
 ``

    (4) Consideration after passage.--
 ``
        (A) In general.--If Congress passes a joint 
 resolution, the period beginning on the date the 
 President is presented with the joint resolution and 
 ending on the date the President signs, allows to 
 become law without the signature of the President, or 
 vetoes and returns the joint resolution (but excluding 
 days when either House is not in session) shall be 
 disregarded in computing the calendar day period 
 described in paragraphs

    (2) and

    (3) of subsection

    (b) .
 ``
        (B) Debate.--Debate on a veto message in the 
 Senate under this section shall be 1 hour equally 
 divided between the majority and minority leaders or 
 their designees.
 ``

    (5) Veto override.--If within the calendar day period 
 described in paragraphs

    (2) and

    (3) of subsection

    (b) , Congress 
 overrides a veto of a joint resolution, the suspension of the 
 limit under 

section 3101

    (b) described in paragraph

    (1) of such 
 subsection shall end as otherwise provided by law.
 ``

    (f) Rules of House of Representatives and Senate.--Subsections

    (a) ,
            (c) ,
            (d) , and

    (e) (except for paragraphs

    (4)
        (A) and

    (5) of such 
subsection) are enacted by Congress--
 ``

    (1) as an exercise of the rulemaking power of the Senate 
 and House of Representatives, respectively, and as such it is 
 deemed a part of the rules of each House, respectively, but 
 applicable only with respect to the procedure to be followed in 
 that House in the case of a joint resolution, and it supersedes 
 other rules only to the extent that it is inconsistent with 
 such rules; and
 ``

    (2) with full recognition of the constitutional right of 
 either House to change the rules (so far as relating to the 
 procedure of that House) at any time, in the same manner, and 
 to the same extent as in the case of any other rule of that 
 House.''.

    (2) Transitional rule.--If, on the date of enactment of 
 this Act, the limit under 

section 3101

    (b) of title 31, United 
 States Code, is not suspended, or the period of the suspension 
 of such section ends less than 46 days after the date of 
 enactment of this Act, until the date on which a suspension of 
 such section next takes effect, subsection

    (b) of 

section 3101B 
 of title 31, United States Code, shall be applied by 
 substituting for paragraph

    (1) of such subsection the 
 following:
 ``

    (1) In general.--Not later than 10 days after the date of 
 enactment of this section, if the Secretary of the Treasury 
 determines that further borrowing will be necessary to meet 
 existing commitments after the date of enactment of this 
 section, the Secretary of the Treasury shall submit to Congress 
 a written certification specifying the end of the period during 
 which the limit under 

section 3101

    (b) should be suspended, 
 which shall be--
 ``
        (A) not later than 2 years after the otherwise 
 applicable end of the period of the suspension of the 
 limit under 

section 3101

    (b) in effect on the date of 
 enactment of this section; or
 ``
        (B) if the limit under such section is not 
 suspended on the date of enactment of this section, not 
 later than 2 years after the date of enactment of this 
 subsection.''.

    (3) Conforming amendment.--The table of sections for 
 chapter 31 of title 31, United States Code, is amended by 
 inserting after the item relating to 

section 3101A the 
 following:

``3101B. Suspension of the debt ceiling.''.

    (b) Additional Information on Debt.--

Section 1105

    (a)

    (10) of title 
31, United States Code, is amended by adding at the end the following: 
``Such information shall include, as a percentage of the gross domestic 
product of the United States, an estimate of the debt held by the 
public and the debt held by the public net of financial assets.''.
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