If Debt Hits the Ceiling, Make Interest Top Priority

J.D. Foster / February 04, 2011

As the Treasury Department reminded us on Wednesday, the federal government will likely reach the debt limit sometime between April 5 and May 31. Hitting the debt ceiling provides a rare moment when Congress and the President are forced to take a stand on a most fundamental and difficult issue: whether the federal government will continue to deficit spend.

A central question in the debt limit debate is whether the government would risk defaulting on its outstanding debt. Contrary to disappointing Administration inferences, the answer is that there is no such risk. But to end once and for all any notion that the U.S. would default on its debt, Congress can pursue legislation to make the payment of interest on the debt the top priority at all times. Congressman Tom McClintock (R–CA) and Senator Pat Toomey (R–PA) have introduced legislation that does just that. (more…)