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