The last time the debt limit
was actually set by statute--January 28, 2012--the limit was $16.
Without an increase in the statutory debt limit
, the U.
The House GOP leadership Monday night had planned on bringing a measure to the floor that would have raised the debt limit
through March 15, 2015, "and mostly eliminated a cut in the military retirement COLA, but we never thought they would be able to get a majority for that bill, and as it turns out, they didn't either," Washington Analysis said.
A suspension of the US debt limit
, enacted by Congress in October, expired on Friday.
Contents Federal Debt Policy and the Debt Limit
Extraordinary Measures and Debt Issuance Suspension Periods Recent Increases in the Debt Limit
The 2011 Debt Limit
Episode The 2011 Debt Ceiling Episode Begins Proposed Solutions in the Spring of 2011 The Budget Control Act of 2011 Debt Limit
Increases Under the BCA The Debt Limit
in 2013 Debt Limit
Reached at End of December 2012 Suspension of the Debt Limit
Until May 19, 2013 Replenishing the U.
Despite the myriad reasons why federal debt levels reach statutory ceilings, the contemporary politics of raising the debt limit
in Congress are actually quite simple.
Congress, under US law, must approve an increase to the federal debt limit
so the government can pay its bills.
Republican lawmakers have floated other ideas, such as a very short debt limit
increase, which would create time for more negotiation at the expense of further market uncertainty, and repeal of a medical device tax.
More significantly, the result could be a dangerous and unpredictable fiscal superstorm that may be harder to resolve than the shutdown alone or the 2011 debt limit
struggle that sent financial markets plummeting and brought the US to the brink of default.
The statutory debt limit
restricts the funds that can be borrowed to meet the government's financial obligations.
Unless Congress is able to extend the debt limit
by that time, the Treasury will add whatever it ultimately spends to the country's current $16.
4 trillion federal debt limit
quickly, warning that benefits that the elderly and military veterans rely on will be affected if they don't and cautioning Republicans not to insist on cuts to government spending in exchange.