Full Faith and Credit Act

The Full Faith and Credit Act

H.R. 421: The Full Faith and Credit Act directs the United States Treasury, in the event the debt ceiling is reached, to pay principal and interest due on debt held by the public before making any other payments. The Treasury will have ten times more revenue than needed to cover interest and debt service this year, so there is no reason for the federal government to default on its obligations.

Amazingly, Treasury Secretary Geithner recently indicated that he might permit the United States to default if Congress does not increase the statutory debt ceiling this year. Maintaining the good credit of the United States is essential to economic prosperity and national security. A default on our debt would have catastrophic consequences, including loss of the nation’s triple-A credit rating, sky-high interest rates, and rapid inflation. This fallout would thwart any effort to return to robust job growth, prosperity, and balanced budgets. Enacting the Full Faith and Credit Act will ensure that default is the absolute last option available to the Treasury.

Sen. Pat Toomey (PA) has introduced the Full Faith and Credit Act in the Senate as S. 163, while Rep. Tom McClintock (CA-4), RSC Chairman Jim Jordan (OH-4), Rep. Virginia Foxx (NC-5), and Rep. Scott Garrett (NJ-5) are leading the charge in the House of Representatives.

About the Bill: 
H.R.421: The Full Faith and Credit Act - Bill Text
H.R.421: The Full Faith and Credit Act - Myth vs. Reality Fact Sheet
Frequently Asked Questions About the FFCA
Press Release: RSC Members Introduce Bill to Prevent Default on the Debt
Sen. Toomey Op-Ed in the Wall Street Journal
Member Letter Requesting FFCA be Included in the CR

Outside Support:
What People are Saying About the FFCA
What Economists are Saying About the FFCA
Letter of Support from Americans for Prosperity
Letter of Support from National Taxpayers Union
Letter of Support from the Council for Citizens Against Government Waste
Letter of Support from Americans for Tax Reform