Republican proposals on debt prioritization would not prevent a U.S. default on its bills, but would likely cause major legal, administrative, and economic disruption. Debt prioritization involves paying some federal bills ahead of others. It’s the Republican answer to get around the default crisis they are creating by refusing to raise the debt ceiling. House Republicans’ so-called Default Prevention Act would codify this reckless approach and prioritize foreign bondholders over funding vital government programs for seniors, veterans, and basic government functions. The plan would be unworkable for the Treasury, invite legal challenges that would disrupt payments, and put the country’s credit rating at risk.

The Default Prevention Act places a higher priority on the Treasury paying off government bonds that come due over other types of government obligations. This effectively means that the Treasury would pay foreign holders of Treasury securities like China, the United Kingdom, and Japan before its own bills at home. There would be no distinction between domestic and foreign investors; all would be given first-priority treatment.

Social Security and Medicare payments would be prioritized next in the Default Prevention Act, while veterans’ benefits, military pay, and defense would be prioritized second. Any other obligations—like Medicaid, infrastructure, education, and law enforcement funding—would be prioritized third. Foreign holders of Treasury securities would receive their payments before America’s seniors, military, veterans, businesses, students, and children.