Republican Debt Prioritization Bill Puts Chinese Bondholders before Veterans, Seniors

House Republicans have a plan for the United States to default on its legal obligations for the first time in our history, which would be devastating to our economy and our credibility in the world. Their plan – the so-called Default Prevention Act – would guarantee payment for a small share of the bills we have already incurred, leaving everything else at risk of non-payment. Numerous economists and Treasury Dept. officials have described the bill as "default by another name."

Who might not get paid under the Republican plan:

• American troops in harm's way
• Retired and disabled veterans
• Doctors and hospitals that treat Medicare patients
• American small businesses who provided goods and services
• School lunch programs
• Universities doing medical research
• College students who earned Pell Grants
• Taxpayers due refunds from the IRS
• Other Americans due payment or benefits from the federal government
• Other federal trust funds holding Treasury bonds (Medicare trust funds, FDIC, highway and airport trust funds, the Federal Housing Administration, etc.)

Who would get paid under the Republican plan:

• Treasury bond holders from China, Japan, Iran, Iraq, and the Cayman Islands
• Banks, mutual funds, and hedge funds
• Social Security Trust Fund (Social Security would be allowed to continue spending contributions American workers have made to its Trust Funds)
• Other "private bondholders" (insurance companies, some pension funds, individual investors)

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