Hagerty Joins Rick Scott, Colleagues in Reintroducing Full Faith and Credit Act to Address Federal Debt Crisis

September 23, 2021

WASHINGTON—United States Senator Bill Hagerty (R-TN), a member of the Senate Appropriations Committee, joined Senator Rick Scott (R-FL) and 10 other GOP colleagues in reintroducing the Full Faith and Credit Act to ensure the federal government prioritizes funding for our military, veterans, and seniors should the federal debt ceiling be reached with no action from Democrats to raise or suspend it.

“All Democrats have done this year is spend on a partisan basis, and they want to pass another $3.5 trillion spending spree—the socialist debt bomb—that puts the United States in an even more precarious fiscal situation,” said Senator Hagerty. “If Democrats push America to the debt limit, it is essential that we prioritize funding for our military, veterans, and seniors, which is what Senator Scott’s bill will do, and I am pleased to support. Washington Democrats must change course before it’s too late.”

The Full Faith and Credit Act would:

  • Require the following to take priority over all other federally incurred obligations in the event that the federal debt reaches the debt ceiling:
    • The Department of the Treasury to pay the principal and interest on debt held by the public;
    • Social Security payments toward monthly Old Age, Survivors and Disability Insurance benefits under title II of the Social Security Act;
    • Pay and allowances for members of the Armed Forces on active duty and the United States Coast Guard;
    • Payment of compensation and pensions and medical services provided by the United States Department of Veterans Affairs; and
    • Medicare programs.
  • Requires the Secretary of the Treasury, if the Secretary determines that incoming revenue will not be sufficient to finance the priorities described above over the following two weeks, to:
    • Notify Congress of the expected revenue shortfall; and
    • Raise the debt limit by the amount necessary to cover the difference between incoming revenue and the revenue needed to finance such priorities on a two-week basis.
  • Prohibit such a debt limit increase from exceeding the difference between expected outlays for the listed priorities and expected revenue.