1. Short title This Act may be cited as the No Default Act . 2. Rescission of discretionary spending and honoring debts during a debt ceiling crisis (a) Definitions In this section: (1) Current fiscal year The term current fiscal year means the fiscal year during which the applicable rescission of discretionary appropriations under subsection (b) occurs. (2) Debt ceiling crisis period The term debt ceiling crisis period means a period— (A) beginning on the date on which, but for subsection (c), the Secretary of the Treasury would not be able to issue obligations under chapter 31 of title 31, United States Code, or other obligations whose principal and interest are guaranteed by the United States Government, because of the limit on the face amount of such obligations that may be outstanding at one time under section 3101(b) of title 31, United States Code; and (B) ending on the date on which the first measure suspending or increasing the limit under section 3101(b) of title 31, United States Code, is enacted into law after the date described in subparagraph (A). (3) Discretionary appropriations The term discretionary appropriations has the meaning given such term in section 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 ( 2 U.S.C. 900(c) ). (b) Rescission of discretionary spending For each discretionary appropriations account, effective on the first day of a debt ceiling crisis period, and every 30 days thereafter until the end of the debt ceiling crisis period, 1 percent of the amount provided for the discretionary appropriations account under the appropriation Act for the current fiscal year is permanently rescinded. (c) Temporary suspension of debt ceiling (1) In general Section 3101(b) of title 31, United States Code, shall not apply for the period— (A) beginning on the first day of a debt ceiling crisis period