Debt Ceiling
The House passed a Budget deal on October 28, 2015 that, among other things, will extends the government’s borrowing authority through mid-March 2017. In 2013, the Republican-controlled House and the Democrat-controlled Senate negotiated with the White House on three fiscal matters with looming deadlines: raising the debt ceiling now approaching the limit $16.5T, massive federal spending cuts known as sequester and a budget resolution. On February 4th, the President signed a bill into law extending the debt limit debate until 5/18/13. This date may also get extended as far as August due to financial manipulations similar to those used in 2011. The "No Budget, No Pay Act of 2013" also mandates that pay for lawmakers be held in escrow starting April 16 until their chamber has passed a 2014 budget resolution. Congress must pass a spending bill, called a continuing resolution or “CR,” which would continue spending after Sept. 30, 2013, the end of the 2013 fiscal year. As it stands now, the government’s legal authority to borrow more money runs out in mid-October, 2013. According to the Bipartisan Policy Center, if that date arrived on October 18, the Treasury “would be about $106 billion short of paying all bills owed between October 18 and November 15. The congressionally mandated limit on federal borrowing is currently set at $16.7 trillion. The debt limit has been raised 13 times since 2001 and has grown from about 55 percent of Gross Domestic Product in 2001 to 102 percent of GDP last year. The hoped for legislation will raise the debt ceiling through Dec. 31, 2014.

After Democratic and Republican leaders forge deal, some GOP lawmakers call the plan a capitulation

from The Wall Street Journal,

The Senate was set to vote on a deal to extend the debt ceiling through early December and avert a looming government default, over the complaints of some GOP lawmakers who cast the agreement struck by party leaders as a capitulation to Democrats. Senate Majority Leader Chuck Schumer (D., N.Y.) announced he was accepting the offer from Senate Minority Leader Mitch McConnell (R., Ky.) on Thursday morning, and later scheduled votes for the evening after both leaders briefed their caucuses. The Senate would first need to clear a 60-vote procedural hurdle before proceeding to final passage of the measure.

Under the agreement, Congress will raise the borrowing limit by $480 billion, the amount the Treasury Department says is needed to meet the country’s cash needs until Dec. 3. House Speaker Nancy Pelosi (D., Calif.) said in a letter to colleagues that she would call the House back early to vote if necessary, and the White House said President Biden would sign the bill.

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