Republicans on the House Ways and Means Committee will consider a bill on Thursday that would prioritize federal spending if the U.S. hits the debt ceiling later this year.
The Default Prevention Act, introduced by Rep. Tom McClintock, R-Calif., would allow the government to continue making interest payments on its debt and sending out social security checks. It would also cut off paychecks to members of Congress.
Treasury Secretary Janet Yellen said in January that her agency had to deploy "extraordinary" measures to stave off the debt ceiling, which is the legal limit on how much money the federal government can borrow.
The nonpartisan Congressional Budget Office projected last month that the government will breach the debt ceiling, which currently sits at $31.4 trillion, some time between July and September.
Republican leaders and the White House have been at an impasse for months over how to avert a default, with Democrats pushing for an increase to the debt limit and the GOP pushing for spending cuts.
"The debt ceiling X Date is fast approaching," Senate Majority Leader Chuck Schumer, D-N.Y., tweeted on Tuesday. "Stop dodging and show us the Republican plan."
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House Speaker Kevin McCarthy, R-Calif., said Thursday that any discussions must involve cutting back on spending.
"We can no longer ignore the major problem that we have – the size of our debt," McCarthy said. "One thing we have learned through all history, every great society has collapsed after overextending themselves."
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President Biden is set to unveil his full budget proposal for the next fiscal year on Thursday.
White House press secretary Karine Jean-Pierre claimed that it will reduce federal deficits by nearly $3 trillion over the next decade, saying Wednesday that it will include "tax reforms to ensure the wealthy and large corporations pay their fair share."
Fox Business' Chris Pandolfo contributed to this report.
