Default Prevention Act Approved by House of Representatives

Press Release

The House of Representatives today passed H.R. 692 by Congressman Tom McClintock on a vote of 235 to 194. The legislation guarantees the sovereign debt of the United States Government by authorizing the Treasury Secretary to continue to borrow to pay interest and principle on the debt, even in the event of complete gridlock in Washington.

"If credit markets doubt that their loans to the federal government will be repaid in full and on time, we could suffer an interest rate spike that could sink our nation in a sea of red ink," McClintock said. "This bill is an absolute guarantee that the sovereign debt of the United States is solid and will be honored."

"The full faith and credit of the United States should not hang in the balance every time there's a fiscal debate in Washington," remarked Congressman McClintock about the measure.

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