Washington, D.C. – The U.S. House on Thursday passed H.R. 807, The Full Faith and Credit Act.  The RSC initiative, sponsored by Rep. Tom McClintock (CA-4), prevents default should the debt ceiling be reached.

“Today, the House took a proactive step to prevent default, provide certainty to seniors, and preserve America’s credit rating,” Scalise said.  “Under President Obama’s watch, the American credit rating was downgraded for the first time in history, and our economy simply cannot afford for that to happen again.  Without this bill, America’s credit rating will be further jeopardized by President Obama as he continues threatening default during each debt ceiling debate.  Hitting the debt ceiling is a symptom of Washington’s spending problem.  By taking the threat of default off the table, this bill allows Washington to focus on actually solving the spending problem so we can create a healthy economy.  

"This legislation serves as an insurance policy, protecting America's economic security from the harm of President Obama's reckless and irresponsible posturing.  House Republicans have laid out a real roadmap for budgeting responsibly and, by taking default off the table, this bill provides certainty for our economy while we work to implement real solutions to the spending problem that continues forcing Washington to max out its credit card.”

Specifically, the Full Faith and Credit Act:

• Prevents default by requiring that the Treasury Department prioritize debt-service payments, including to the Social Security Trust Fund, in the event the debt ceiling is hit.
• Preserves our status as an economic leader.
• Protects the U.S. Credit Rating.
• Provides certainty to seniors and our economy.