{"id":566492,"date":"2023-03-19T14:00:00","date_gmt":"2023-03-19T11:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/gop-led-debt-prioritization-push-to-help-prevent-default-draws-mixed-reviews\/"},"modified":"2023-03-19T14:00:00","modified_gmt":"2023-03-19T11:00:00","slug":"gop-led-debt-prioritization-push-to-help-prevent-default-draws-mixed-reviews","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/gop-led-debt-prioritization-push-to-help-prevent-default-draws-mixed-reviews\/","title":{"rendered":"#GOP-led \u2018debt prioritization\u2019 push to help prevent default draws mixed reviews"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a273946cb9aa\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a273946cb9aa\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/gop-led-debt-prioritization-push-to-help-prevent-default-draws-mixed-reviews\/#GOP-led_%E2%80%98debt_prioritization_push_to_help_prevent_default_draws_mixed_reviews\" >GOP-led \u2018debt prioritization\u2019 push to help prevent default draws mixed reviews<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"GOP-led_%E2%80%98debt_prioritization_push_to_help_prevent_default_draws_mixed_reviews\"><\/span>GOP-led \u2018debt prioritization\u2019 push to help prevent default draws mixed reviews<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/kellymike_031023gn01_w.jpg?w=900\" \/><\/p>\n<div>\n<p>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.<\/p>\n<p>But while the idea of so-called debt prioritization is gaining legs among some Republicans in both chambers, it\u2019s getting a lukewarm reception from others and has some experts scratching their heads.<\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p>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 <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Social<\/a> Security and Medicare, among a few other obligations, if the debt limit is breached.\u00a0<\/p>\n<p>Some House Republicans are urging swift passage in the House for the bill, known as the Default Prevention Act,\u00a0as the party draws red lines around working with Democrats to raise the ceiling without steep cuts or significant fiscal reforms.<\/p>\n<p>\u201cOur house is burning down. I think we\u2019re waiting too long to call the fire department,\u201d Rep. Mike Kelly (R-Pa.), who serves on the House\u2019s chief tax-writing committee, told The Hill last week.<\/p>\n<p>He said the House should \u201cabsolutely\u201d move quickly on the measure.<\/p>\n<p>A group of Republican senators also revived a legislative effort earlier this year outlining obligations for the Treasury to prioritize the national debt in a similar scenario, though the bill faces tougher odds getting past the Democratic-led Senate.\u00a0But that doesn\u2019t mean all Republicans are thrilled about the prospect.\u00a0<\/p>\n<p>Pressed about the concept on Thursday, Sen. Lisa Murkowski (R-Alaska) said she understood the \u201cneed to have things in your back pocket to understand that, if in the event we had to, we were in this situation, how would you proceed in a manner that, perhaps, least disruptive.\u201d<\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\"><\/aside>\n<p>\u201cBut again, I don\u2019t think we should be planning for defeat, or planning for default,\u201d she added. \u201cLet\u2019s plan for success. Let\u2019s address this, while there\u2019s still time on the clock.\u201d<\/p>\n<p>While Sen. John Kennedy (R-La.) said he hadn\u2019t seen the House bill, he told The Hill on Thursday that he didn\u2019t \u201csee the advantage\u201d of a debt prioritization plan.\u00a0<\/p>\n<p>\u201cI need to just study it some, but we\u2019re gonna raise the debt limit or we\u2019re not,\u201d he said, \u201cand can prioritize your debt in a way that delays the decision, but sooner or later, you have to make it.\u201d<\/p>\n<aside class=\"ad-unit ad-unit--mr3_ab\"><\/aside>\n<p>Backers of the House bill argue the idea could remove the threat of a national default \u2014 an outcome experts say would be catastrophic for the country \u2014 by seeking to require the government to stay on top of principal and interest payments, while also prioritizing payments on entitlements, defense and veterans programs.\u00a0<\/p>\n<p>But Democrats and some experts have panned the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach as dangerous, saying such a move would put at risk other important programs not mentioned in the text.<\/p>\n<p>\u201cWe are saying here China, which has about 1 trillion of America\u2019s debt, will be paid first,\u201d Rep. Richard Neal (Mass.), top Democrat on the House Ways and Means Committee, said during a markup hearing on\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"http:\/\/waysandmeans.house.gov\/wp-content\/uploads\/2023\/03\/Amendment-in-the-Nature-of-a-Substitute-to-H.R.-187.pdf\">the bill<\/a>\u00a0last week.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr4_ab\"><\/aside>\n<p>Neal is referring to the multi-tiered system for payment outlined in\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"http:\/\/waysandmeans.house.gov\/wp-content\/uploads\/2023\/03\/Amendment-in-the-Nature-of-a-Substitute-to-H.R.-187.pdf\">the bill<\/a>. The first tier outlined refers to payments on principal and interest on debt held by the public, in addition to trusts funds for Social Security and Medicare. The second tier applies to obligations for the Department of Defense and \u201cbenefits under laws administered by the Secretary of Veterans Affairs.\u201d\u00a0<\/p>\n<p>Programs that fit outside the classification would fall into subsequent tiers, including pay for members of Congress, the president and the vice president, which is ranked in the last two tiers.<\/p>\n<p>\u201cThat means that the nursing homes will go under in your respective congressional districts, while this legislation pays China first. That issue is not in dispute,\u201d Neal said during the hearing, while taking issue with where programs like Medicaid would fall on the list.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr5_ab\"><\/aside>\n<p>The pitch for debt prioritization has also been met with pushback from Treasury Secretary Janet Yellen, who cast the effort to senators on Thursday as \u201can exceptionally risky, untested, and radical departure from normal payment practices of agencies across the federal government.\u201d<\/p>\n<p>\u201cPrioritization is effectively a default by just another name,\u201d she argued. She also doubted the plan\u2019s feasibility, noting the government makes millions of payments daily and the agencies\u2019 systems \u201care built to pay all of our bills on time and not to pick and choose which ones to pay.\u201d<\/p>\n<p>The secretary\u2019s assessment has drawn mixed opinions from experts. Some say the agency could have the capacity to make applicable changes to its systems, if need be. But there is agreement among experts that such a path could pose dangerous risks.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr6_ab\"><\/aside>\n<p>\u201cInstead of defaulting on the bondholders you\u2019re defaulting on SNAP (Supplemental Nutrition Assistance Program) recipients,\u201d George Hall, economics professor at Brandeis University, said Friday. \u201cThe government has lots and lots of contracts out there, lots of employees and things like that. Pick any department.\u201d<\/p>\n<p>Bill Gale, a senior economic studies fellow at Brookings Institution, also argued the bill \u201ccan\u2019t prevent\u201d a default, saying.<\/p>\n<p>\u201cIf the government promises you money, and doesn\u2019t pay it, in economic terms, it\u2019s a default, whether you\u2019re a bond holder, or a Social Security beneficiary, or a Medicaid beneficiary or TANF (Temporary Assistance for Needy Families) beneficiary,\u201d he added.\u00a0<\/p>\n<\/div>\n<p>Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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