The Obama administration will ask Congress to increase federal borrowing authority by $1.2 trillion as the nation approaches the debt limit set by law, according to a Treasury Department official.
The White House will send the request to Congress on Dec. 30, the day the debt is projected to rise to within $100 billion of the $15.194 trillion limit, the Treasury official told reporters today on condition of anonymity.
Congress will be notified under the terms of a deal to raise the limit worked out on Aug. 2 after months of wrangling between the administration and Republican lawmakers. Three days later, Standard & Poor’s cut the nation’s AAA rating for the first time, saying the country lacked a “credible” plan to reduce budget deficits.
The Budget Control Act of 2011 gives Congress 15 days to pass a joint resolution disapproving the increase in the debt limit. The president can veto such a measure.
The limit has already been raised twice since the act was approved, by a total of $900 billion. It would rise to $16.394 trillion after the latest increase. The Treasury official said the limit won’t be reached again until late next year.
To contact the reporters on this story: Cheyenne Hopkins at Chopkins19@bloomberg.net
To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net
© Copyright 2012 Bloomberg News. All rights reserved.