The plan was part of the private deal struck between House conservatives and Rep. Kevin McCarthy (R-CA) in order for McCarthy to win speakership, according to Rep. Chip Roy (R-TX), who helped broker the deal. Roy told the Washington Post that McCarthy agreed to adopt a payment prioritization plan by the end of the first quarter of the year.

According to the Post, the emergency contingency plan will need to include major spending cuts from the Biden administration, in exchange for which Republicans will sign off on raising the current limit of $31.4 trillion before the Treasury Department can't borrow any more.

On Friday, Treasury Secretary Janet Yellen said that the Treasury department will enact "extraordinary measures" next week so the government can keep its payment obligations - however she couldn't guarantee that the US will make it beyond early June without default.