This bill would require the Dept. of the Treasury to continue borrowing after the debt limit has been reached. This ensures that the country can make good on its obligations related to mandatory spending and debt service. Essentially, this bill would make these types of debt exempt from the debt limit.
The Treasury would be required to issue debt obligations to allow the federal government to make payments on the principal and interest on the portion of the national debt held by the public or the Social Security Trust Funds. These obligations could not be used for paychecks for members of Congress.
If the Treasury uses the authority granted it by the legislation, it must report to Congress with accounting details on:
The principal on mature obligations and interest that is due or accrued;
Obligations issued under this bill.