GOP-led ‘debt prioritization’ push to help prevent default draws mixed reviews – By Aris Folley (The Hill) / Mar 19 2023
A GOP-backed push to lay out a plan for the government to prioritize certain payments if the Treasury runs out of emergency measures to prevent a default is picking up some traction as both parties dig in their heels on the debt ceiling battle.
But while the idea of so-called debt prioritization is gaining legs among some Republicans in both chambers, it’s getting a lukewarm reception from others and has some experts scratching their heads.
A bill recently passed out of the GOP-led House Ways and Means Committee would require the Treasury Department to prioritize payments for principal and interest on debt held by the public, as well as benefits for Social Security and Medicare, among a few other obligations, if the debt limit is breached.
Some House Republicans are urging swift passage in the House for the bill, known as the Default Prevention Act, as the party draws red lines around working with Democrats to raise the ceiling without steep cuts or significant fiscal reforms.
