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Schumer Supports ‘Concept’ of Payment-Prioritization Bill



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Today on Meet the Press, Senator Ted Cruz discussed his sponsorship of the Full Faith and Credit Act, a legislative proposal that would ensure that the government’s debt obligations are met in the event the debt ceiling is reached by prioritizing making debt payments (and then paying the military, then Social Security, and then Medicare). He prompted Senator Schumer on the issue, asking him if he would support such a bill — Schumer demurred some, but said, “I support the concept, I’d have to look at the bill.” He continued to emphasize that he supports “the McConnell proposal,” to “let us raise the debt ceiling, no strings attached.”

Cruz noted that a similar bill was introduced “2010 and didn’t pass, because Harry Reid and President Obama didn’t want it to pass,” explaining that the two of them “wanted to raise the specter of a default.”

It is also worth noting, however, that some have questioned the feasibility of prioritizing payments, and noted that even if it were implemented successfully, hitting the debt ceiling would still significantly increase perceptions of the U.S.’s sovereign risk, and might still negatively impact our credit rating.



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