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Debt Ceiling Reform: Ensuring US Financial Stability and Preventing Default.

This act aims to ensure the United States can always meet its financial obligations, preventing the risk of default. It introduces a mechanism for automatic suspension of the debt limit unless Congress explicitly disapproves. This provides citizens with greater confidence in the nation's financial stability and the continuity of government payments.
Key points
Automatic Debt Limit Suspension: The Treasury Secretary can suspend the debt limit for up to 2 years to allow the government to meet its obligations.
Congressional Oversight: Congress has 45 days to disapprove the debt limit suspension if they disagree.
Treasury Restrictions: During a suspension, the Treasury cannot accumulate excessive cash reserves, and new obligations must be necessary for current expenditures.
Increased Transparency: The act requires the government to provide more information on public debt as a percentage of GDP.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_2405
Sponsor: Sen. Merkley, Jeff [D-OR]
Process start date: 2025-07-23
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Debt Ceiling Reform Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_2405.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-07-23.

What are the main provisions?

Key points include:

  • Automatic Debt Limit Suspension: The Treasury Secretary can suspend the debt limit for up to 2 years to allow the government to meet its obligations.
  • Congressional Oversight: Congress has 45 days to disapprove the debt limit suspension if they disagree.
  • Treasury Restrictions: During a suspension, the Treasury cannot accumulate excessive cash reserves, and new obligations must be necessary for current expenditures.
  • Increased Transparency: The act requires the government to provide more information on public debt as a percentage of GDP.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Merkley, Jeff [D-OR].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Economy Public Investments