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Debt Limit Since 2011 [Updated April 1, 2021]
From the Summary: "The Constitution grants Congress the power to borrow money on the credit of the United States-- one part of its power of the purse--and thus mandates that Congress exercise control over federal debt. Control of debt policy has at times provided Congress with a means of raising concerns regarding fiscal policies. Debates over federal fiscal policy have been especially animated in the past decade, in part because of the accumulation of federal debt in the wake of the 2007-2008 financial crisis and subsequent recession. Rising debt levels, along with continued differences in views of fiscal policy, led to a series of contentious debt limit episodes in recent years."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2021-04-01
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Treasuries and Repo in the Time of COVID-19 [July 20, 2020]
From the Document: "The U.S. Treasury issues debt securities--known as Treasuries--that play three critical roles in the economy: funding the government, supplying safe assets, and anchoring liquidity flows in financial markets. This Insight examines how the coronavirus pandemic has affected all three roles."
Library of Congress. Congressional Research Service
Austin, D. Andrew; Miller, Rena S.
2020-07-20
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Economic and Fiscal Conditions in the U.S. Virgin Islands [Updated February 13, 2020]
From the Document: "This report provides an overview of economic and fiscal conditions in the U.S. Virgin Islands (USVI). The political status of the U.S. Virgin Islands and responses to Hurricanes Irma and Maria are not covered in depth here. Fiscal and economic challenges facing the USVI government raise several issues for Congress. First, Congress may choose to maintain oversight of federal policies that could affect the USVI's long-term fiscal stability. Second, Congress may consider further legislation that would extend or restructure long-range disaster assistance programs to mitigate those challenges and promote greater resiliency of infrastructure and public programs. Federal responses to the USVI's fiscal distress could conceivably affect municipal debt markets more broadly."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2020-02-13
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The Debt Limit Since 2011 [Updated July 24, 2019]
From the Summary: "The Constitution grants Congress the power to borrow money on the credit of the United States--one part of its power of the purse--and thus mandates that Congress exercise control over federal debt. Control of debt policy has at times provided Congress with a means of raising concerns regarding fiscal policies. Debates over federal fiscal policy have been especially animated in the past decade, in part because of the accumulation of federal debt in the wake of the 2007-2008 financial crisis and subsequent recession. Rising debt levels, along with continued differences in views of fiscal policy, led to a series of contentious debt limit episodes in recent years."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2019-07-24
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Debt Limit Since 2011 [Updated July 1, 2019]
From the Summary: "The Constitution grants Congress the power to borrow money on the credit of the United States--one part of its power of the purse--and thus mandates that Congress exercise control over federal debt. Control of debt policy has at times provided Congress with a means of raising concerns regarding fiscal policies. Debates over federal fiscal policy have been especially animated in the past decade, in part because of the accumulation of federal debt in the wake of the 2007-2008 financial crisis and subsequent recession. Rising debt levels, along with continued differences in views of fiscal policy, led to a series of contentious debt limit episodes in recent years. The most recent suspension of the debt limit lapsed after March 1, 2019. The limit was then reset at $21.988 trillion, a level that accommodates federal obligations incurred during the suspension period. U.S. Treasury Secretary Steven Mnuchin invoked extraordinary authorities on March 4, 2019. CBO [Congressional Budget Office] estimated that Treasury could meet federal obligations until just before or just after October 1, 2019. One private estimate suggests Treasury could cover federal payments until at least mid-August or even early October. Such estimates are subject to considerable uncertainty."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2019-07-01
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Debt Limit Since 2011 [Updated March 5, 2019]
From the Document: "The Constitution grants Congress the power to borrow money on the credit of the United States-- one part of its power of the purse--and thus mandates that Congress exercise control over federal debt. Control of debt policy has at times provided Congress with a means of raising concerns regarding fiscal policies. Debates over federal fiscal policy have been especially animated in the past decade, in part because of the accumulation of federal debt in the wake of the 2007-2008 financial crisis and subsequent recession. Rising debt levels, along with continued differences in views of fiscal policy, led to a series of contentious debt limit episodes in recent years."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2019-03-05
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Economics of Federal User Fees [January 22, 2019]
"The federal government collects various fees from businesses and households. Choosing to raise public funds via user fees, as opposed to other means such as taxes, has important administrative and economic consequences. Many fees stem from 'business-like activities,' in which the government provides a service or benefit in return for payment. For example, many national parks charge entry fees, which then help fund maintenance projects. Such fees and charges that result from voluntary choices, such as entering a national park, are distinguished from taxes-- which stem from the government's sovereign power to compel payments. The Government Accountability Office (GAO) defines a user fee as a 'fee assessed to users for goods or services provided by the federal government. User fees generally apply to federal programs or activities that provide special benefits to identifiable recipients above and beyond what is normally available to the public.'"
Library of Congress. Congressional Research Service
Austin, D. Andrew
2019-01-22
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Debt Limit Since 2011 [Updated December 20, 2018]
"The Constitution grants Congress the power to borrow money on the credit of the United States-- one part of its power of the purse--and thus mandates that Congress exercise control over federal debt. Control of debt policy has at times provided Congress with a means of raising concerns regarding fiscal policies. Debates over federal fiscal policy have been especially animated in the past decade, in part because of the accumulation of federal debt in the wake of the 2007-2008 financial crisis and subsequent recession. Rising debt levels, along with continued differences in views of fiscal policy, led to a series of contentious debt limit episodes in recent years. The debt limit is currently suspended through March 1, 2019. The limit will then be reset at a level that accommodates federal obligations incurred during the suspension period. The U.S. Treasury will then use cash balances, incoming revenues, and extraordinary measures to meet federal obligations. One estimate suggests those resources would suffice to cover federal payments until August, if not later."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2018-12-20
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Trends in Mandatory Spending: In Brief [September 14, 2018]
"Federal spending is divided into three broad categories: discretionary spending, mandatory spending, and net interest. Those categories are procedural--that is, how Congress provides or has provided spending authority differs among those categories. The Budget Enforcement Act of 1990 (BEA; P.L. 101-508) provides a statutory definition for those terms, which are therefore referred to as BEA categories. To large extent, however, the type of spending differs across those categories. Discretionary spending, by and large, funds operations of federal agencies. Net interest spending is the government's interest payments on debt held by the public, offset by interest income that the government receives.Major entitlement programs such as Social Security, Medicare, and Medicaid make up the bulk of mandatory spending. Other mandatory spending funds various income support programs, including Supplemental Security Income (SSI), unemployment insurance, and the Supplemental Nutrition Assistance Program (SNAP), as well as federal employee and military retirement and some veterans' benefits.In recent decades, mandatory spending has been the largest component of the federal budget."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2018-09-14
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Economic and Fiscal Conditions in the U.S. Virgin Islands [June 20, 2018]
"Fiscal and economic challenges facing the U.S. Virgin Islands (USVI) government raise several issues for Congress. Congress may choose to maintain oversight of federal policies that could affect the USVI's long-term fiscal stability. Congress also may consider further legislation that would extend or restructure long-range disaster assistance programs to mitigate those challenges and promote greater resiliency of infrastructure and public programs. Federal responses to the USVI's fiscal distress could conceivably affect municipal debt markets more broadly. The USVI, like many other Caribbean islands acquired by European powers, were used to produce sugar and other tropical agricultural products and to further strategic interests such as shipping and the extension of naval forces. Once the United States acquired the U.S. Virgin Islands shortly before World War I, they effectively ceased to have major strategic importance. Moreover, at that time the Virgin Islands' sugar-based economy had been in decline for decades."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2018-06-20
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Debt Limit Since 2011 [March 29, 2018]
"The Constitution grants Congress the power to borrow money on the credit of the United States-- one part of its power of the purse--and thus mandates that Congress exercise control over federal debt. Control of debt policy has at times provided Congress with a means of raising concerns regarding fiscal policies. Debates over federal fiscal policy have been especially animated in recent years. The accumulation of federal debt accelerated in the wake of the 2007-2008 financial crisis and subsequent recession. Rising debt levels, along with continued differences in views of fiscal policy, led to a series of contentious debt limit episodes in recent years."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2018-03-29
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Potential Options for Electric Power Resiliency in the U.S. Virgin Islands [February 14, 2018]
"In September of 2017, Hurricanes Irma and Maria, both Category 5 storms, caused catastrophic damage to the U.S. Virgin Islands (USVI), which include the main islands of Saint Croix, Saint John, and Saint Thomas among other smaller islands and cays. Hurricane Irma hit the USVI on September 6 with the eye passing over St. Thomas and St. John. Fourteen days later, on September 20, the eye of Hurricane Maria swept near St. Croix with maximum winds of 175 mph. The USVI government estimates that total uninsured damage from the hurricanes will exceed $7.5 billion. Although the electric power plants fared 'relatively well' according to the local public water and power utility (the Virgin Islands Water and Power Authority (VIWAPA)), 80-90% of the power transmission and distribution systems across the USVI were damaged. In November 2017, the government of the USVI estimated that $850 million in hurricane recovery funding is needed to help 'rebuild a more resilient electrical system.' Before the 2017 hurricane season, VIWAPA was already challenged with fiscal problems and aging infrastructure. Although the USVI has never defaulted on its obligations, its fiscal problems include high debt levels, pension obligations, decreasing tax bases, and outdated infrastructures."
Library of Congress. Congressional Research Service
Clark, Corrie E.; Campbell, Richard J.; Austin, D. Andrew
2018-02-14
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Debt Limit Since 2011 [February 2, 2018]
"The Constitution grants Congress the power to borrow money on the credit of the United States-- one part of its power of the purse--and thus mandates that Congress exercise control over federal debt. Control of debt policy has at times provided Congress with a means of raising concerns regarding fiscal policies. Debates over federal fiscal policy have been especially animated in recent years. The accumulation of federal debt accelerated in the wake of the 2007-2008 financial crisis and subsequent recession. Rising debt levels, along with continued differences in views of fiscal policy, led to a series of contentious debt limit episodes in recent years."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2018-02-02
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Debt Limit Since 2011 [January 19, 2018]
"The Constitution grants Congress the power to borrow money on the credit of the United States--one part of its power of the purse--and thus mandates that Congress exercise control over federal debt. Control of debt policy has at times provided Congress with a means of raising concerns regarding fiscal policies. Debates over federal fiscal policy have been especially animated in recent years. The accumulation of federal debt accelerated in the wake of the 2007-2008 financial crisis and subsequent recession. Rising debt levels, along with continued differences in views of fiscal policy, led to a series of contentious debt limit episodes in recent years. [...] On September 6, 2017, an agreement on the debt limit and a continuing resolution was announced between President Trump and congressional leaders. Two days later a measure (P.L. 115-56) was enacted to implement that agreement, which included a suspension of the debt limit through December 8, 2017. Once that suspension lapsed, Treasury Secretary Mnuchin invoked authorities to employ extraordinary measures. One recent estimate suggests those would last until sometime in early March and another indicated the critical date could fall between late February and late March 2018. Secretary Mnuchin reportedly asked some congressional leaders to act on the debt limit before the end of February 2018. Total federal debt increases when the government sells debt to the public to finance budget deficits, which adds to debt held by the public, or when the federal government issues debt to certain government accounts, such as the Social Security, Medicare, and Transportation trust funds, in exchange for their reported surpluses--which adds to debt held by government accounts; or when new federal loans outpace loan repayments. The sum of debt held by the public and debt held by government accounts is the total federal debt. Surpluses reduce debt held by the public, while deficits raise it. This report will be updated as events warrant."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2018-01-19
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Repair or Rebuild: Options for Electric Power in Puerto Rico [November 16, 2017]
"On September 20, 2017, Hurricane Maria made landfall in Puerto Rico as a Category 4 storm with sustained wind speeds of over 155 miles per hour. The hurricane also brought torrential rainfall with a range of 15 to 40 inches or more in some places, resulting in widespread flooding across the island. Puerto Rico's office of emergency management reported that the storm had incapacitated the central electric power system, leaving the entire island without power as the island's grid was essentially destroyed. [...] This report explores several alternative electric power structures to PREPA [Puerto Rico Electric Power Authority] for meeting the electricity services and needs of Puerto Rico. The ability of Puerto Rico and its citizens to assume the burden of paying for a rebuilt (and possibly restructured) electricity system is doubtful. Modernizing Puerto Rico's grid, and taking the next steps to incorporate resiliency, could be expensive. None of the options discussed provides a silver bullet solution to the issues of the grid in Puerto Rico. Congress may consider whether the efforts to restore electric power in Puerto Rico need to progress beyond simple restoration of electricity, and require new investment and oversight by the federal government."
Library of Congress. Congressional Research Service
Campbell, Richard J.; Clark, Corrie E.; Austin, D. Andrew
2017-11-16
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Clearing the Air on the Debt Limit [November 02, 2017]
"The statutory debt limit, currently suspended through December 8, 2017, provides Congress a means of controlling federal borrowing. As the date when that suspension will lapse approaches, discussions about the role of the debt limit among the media, researchers, and Members of Congress promise to become more frequent. In recent discussions, misleading or less than fully accurate claims have, at times, surfaced. This report provides clarifications on five common debt limit contentions. Some of those points in need of clarification relate to the congressional power of the purse, which stems from three closely related constitutional provisions that charge Congress with deciding how the federal government spends, taxes, and borrows."
Library of Congress. Congressional Research Service
Austin, D. Andrew; Thomas, Kenneth R.
2017-11-02
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Debt Limit Since 2011 [August 09, 2017]
"The Constitution grants Congress the power to borrow money on the credit of the United States-- one part of its power of the purse--and thus mandates that Congress exercise control over federal debt. Control of debt policy has at times provided Congress with a means of raising concerns regarding fiscal policies. Debates over federal fiscal policy have been especially animated in recent years. The accumulation of federal debt accelerated in the wake of the 2007-2008 financial crisis and subsequent recession. Rising debt levels, along with continued differences in views of fiscal policy, led to a series of contentious debt limit episodes in recent years."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2017-08-09
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Puerto Rico Electric Power Authority and Debt Restructuring Under PROMESA, P.L. 114-187 [August 08, 2017]
"In recent years, the Commonwealth of Puerto Rico (CPR) has faced a fiscal crisis resulting from economic contraction, high public sector debt levels, outmigration, and other factors. In recent weeks, the finances of the Puerto Rico Electric Power Authority (PREPA)--or in Spanish, the Autoridad de Energía Eléctrica (AEE)--have attracted specific attention. PREPA's debt--about $9 billion--is larger than that of any other operational U.S. public corporation. Planned actions to address the debt, and high electricity prices due to the deteriorating state of the island's generating and transmission infrastructure, may adversely affect its economic development prospects and the well-being of its residents. Moreover, the restructuring of PREPA could have wider implications for municipal finance and infrastructure policy."
Library of Congress. Congressional Research Service
Austin, D. Andrew; Campbell, Richard J.
2017-08-08
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Debt Limit Since 2011 [June 5, 2017]
"The Constitution grants Congress the power to borrow money on the credit of the United States- one part of its power of the purse-and thus mandates that Congress exercise control over federal debt. Control of debt policy has at times provided Congress with a means of raising concerns regarding fiscal policies. Debates over federal fiscal policy have been especially animated in recent years. The accumulation of federal debt accelerated in the wake of the 2007-2008 financial crisis and subsequent recession. Rising debt levels, along with continued differences in views of fiscal policy, led to a series of contentious debt limit episodes in recent years."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2017-06-05
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Debt Limit Since 2011 [March 14, 2017]
"The Constitution grants Congress the power to borrow money on the credit of the United States-one part of its power of the purse-and thus mandates that Congress exercise control over federal debt. Control of debt policy has at times provided Congress with a means of raising concerns regarding fiscal policies. Debates over federal fiscal policy have been especially animated in recent years. The accumulation of federal debt accelerated in the wake of the 2007-2008 financial crisis and subsequent recession. Rising debt levels, along with continued differences in views of fiscal policy, led to a series of contentious debt limit episodes in recent years. […] On March 8, 2017, Treasury Secretary Steven Mnuchin notified Congress that extraordinary measures would again be used once the debt limit suspension expired after March 15. CBO [Congressional Budget Office] estimated that those measures could meet federal obligations until sometime in the fall of 2017. [...] This report will be updated as events warrant."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2017-03-14
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Debt Limit Since 2011 [February 13, 2017]
"The Constitution grants Congress the power to borrow money on the credit of the United States- one part of its power of the purse-and thus mandates that Congress exercise control over federal debt. Control of debt policy has at times provided Congress with a means of raising concerns regarding fiscal policies. Debates over federal fiscal policy have been especially animated in recent years. The accumulation of federal debt accelerated in the wake of the 2007-2008 financial crisis and subsequent recession. Rising debt levels, along with continued differences in views of fiscal policy, led to a series of contentious debt limit episodes in recent years. [...] This report will be updated as events warrant."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2017-02-13
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Debt Limit Since 2011 [January 31, 2017]
"In 2011, federal debt had reached its legal limit on May 16, prompting then Treasury Secretary Timothy Geithner to declare a debt issuance suspension period, allowing certain extraordinary measures to extend Treasury's borrowing capacity. That debt limit episode was resolved on August 2, 2011, when President Obama signed the Budget Control Act of 2011 (BCA; S. 365; P.L. 112-25). The BCA included provisions aimed at deficit reduction and allowing the debt limit to rise in three stages, the latter two subject to congressional disapproval. Once the BCA was enacted, a presidential certification triggered a $400 billion increase, raising the debt limit to $14,694 billion, and a second $500 billion increase on September 22, 2011, as a disapproval measure (H.J.Res. 77) only passed the House. A January 12, 2012, presidential certification triggered a third, $1,200 billion increase on January 28, 2012, although the House passed a disapproval measure."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2017-01-31
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Discretionary Budget Authority by Subfunction: An Overview [December 16, 2016]
From the Document: "This report provides a graphical overview of historical trends in discretionary budget authority (BA) from FY1977 through FY2016, preliminary estimates for FY2016 spending, and the levels reflecting the President's proposals for FY2016 through FY2021 using data from the FY2017 budget submission released on February 9, 2016. This report, by illustrating trends in broad budgetary categories, provides a starting point for discussions about fiscal priorities. Other CRS products analyze spending trends in specific functional areas. Functional categories (e.g., national defense, agriculture, etc.) provide a means to compare federal funding for activities within broad policy areas that often cut across several federal agencies. Subfunction categories provide a finer division of funding levels within narrower policy areas. Budget function categories are used within the budget resolution and for other purposes, such as estimates of tax expenditures."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2016-12-16
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Has the U.S. Government Ever 'Defaulted'? [December 8, 2016]
"Concerns arise during debt limit episodes that the lack of action to raise or suspend the debt limit could impede the U.S. Treasury's ability to meet federal obligations. In October 2015, the U.S. Treasury argued that allowing the debt limit to constrain the government's ability to meet its obligations 'would represent an irresponsible retreat from a core American value: we are a nation that honors all of its commitments'; and that '(f)ailing to increase the debt limit would have catastrophic economic consequences. It would cause the government to default on its legal obligations.' How the term 'default' would apply to Treasury's ability to pay federal bills, however, has been controversial. For instance, during a September 2015 House Ways and Means Committee markup of H.R. 692, some Members stated that a binding debt limit that would limit the Treasury Secretary's ability to meet federal obligations on a timely basis would be tantamount to default, while other Members stated that default would only encompass a failure to make principal and interest payments linked to U.S. Treasury securities. This report discusses the concept of default in the context of the federal government's financial obligations. The report then discusses past cases in which the federal government failed to make certain payments on time. During the War of 1812, the lack of a fiscal agent and the pressures of funding military operations at times left the U.S. Treasury without the means of meeting its obligations. The suspension of the gold standard in 1933-1934 has been considered by some to constitute default, even though the Supreme Court affirmed that taking that action was within the power of Congress to set monetary policy."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2016-12-08
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Trends in Mandatory Spending: In Brief [September 26, 2016]
"Mandatory spending is composed of budget outlays controlled by laws other than appropriations acts, including federal spending on entitlement programs. By contrast, discretionary spending is provided and controlled through appropriations acts. Mandatory spending typically is provided in permanent or multi-year appropriations contained in an authorizing law. [...] Such funding becomes available automatically each year, without further legislative action by Congress. Some entitlement spending, such as for Medicaid, the Supplemental Nutrition Assistance Program (SNAP; formerly Food Stamps), and certain veterans' programs, is funded, but not controlled, in annual appropriations acts. [...] How mandatory programs are funded varies. Social Security is supported by payroll taxes paid by employers and employees, which are earmarked for trust funds from which benefits are paid. Medicare is funded by a combination of payroll taxes, beneficiary premiums, and general federal revenues. Medicaid is a joint federal-state program, in which the federal cost share is determined by a statutory formula. Retirement programs for those in federal service are supported by payroll deductions and contributions, as well as general revenues. Some other mandatory programs, such as veterans' income security benefits and agricultural subsidies, are typically funded from general revenues. Administrative costs of federal benefits programs are generally supported by discretionary funding, even if the benefits are paid out of mandatory funds. [...] In FY2016, mandatory spending accounts for an estimated 63% of total federal spending. In previous decades, mandatory spending accounted for a smaller share of federal outlays. In 1962, before the creation of Medicare and Medicaid, mandatory spending was less than 30% of all federal spending."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2016-09-26
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Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA; H.R. 5278, S. 2328)
"The Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA; H.R. [House Bill] 5278) would create a structure for exercising federal oversight over the fiscal affairs of territories. PROMESA would establish an Oversight Board with broad powers of budgetary and financial control over Puerto Rico. PROMESA also would create procedures for adjusting debts accumulated by the Puerto Rico government and its instrumentalities and potentially for debts of other territories. Finally, PROMESA would expedite approvals of key energy projects and other 'critical projects' in Puerto Rico. [...] The report presents a brief description of Puerto Rico, its relationship with the federal government, and its fiscal challenges. A short overview of the bill, along with a comparison with previous legislation involving control boards, follows. The body of the report provides a section-by-section description of H.R. 5278."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2016-07-01
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Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA; H.R. 5278) [June 27, 2016]
"Representative Duffy introduced H.R. 5278, the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA), on May 18, 2016. This bill is a revised version of H.R. 4900, which Representative Duffy had introduced on April 12, 2016. The House Committee on Natural Resources marked up H.R. 5278 on May 25, 2016. Amendments agreed to include technical corrections and extensions of certain studies on the Puerto Rico government and economy, among others. The major provisions of the bill, however, were unaffected. An amended version of H.R. 5278, which is organized into seven titles, was passed by the House on June 9, 2016, by a 297-127 vote. The Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA; H.R. 5278) would create a structure for exercising federal oversight over the fiscal affairs of territories. PROMESA would establish an Oversight Board with broad powers of budgetary and financial control over Puerto Rico. PROMESA also would create procedures for adjusting debts accumulated by the Puerto Rico government and its instrumentalities and potentially for debts of other territories. Finally, PROMESA would expedite approvals of key energy projects and other 'critical projects' in Puerto Rico. The report presents a brief description of Puerto Rico, its relationship with the federal government, and its fiscal challenges. A short overview of the bill, along with a comparison with previous legislation involving control boards, follows. The body of the report provides a section-by-section description of H.R. 5278. Appendix A gives a background on Puerto Rico's fiscal situation and aspects relevant to H.R. 4900. Appendix B contains a summary of provisions of the federal Bankruptcy Code cited in H.R. 5278."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2016-06-27
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Puerto Rico's Current Fiscal Challenges [April 11, 2016]
"The government of Puerto Rico faces severe fiscal challenges. A federal District Court judge in late March 2016 held that the island's government was insolvent and unable to pay its obligations on time. Emergency legislation (Act 21 of 2016) enacted on April 6, 2016, stated that the Puerto Rican government's fiscal condition 'is more dire than at any other point in its history' and that 'depleted resources and strained liquidity threaten to bind the Commonwealth to a choice between honoring its commitments to bondholders or continuing to provide the residents of Puerto Rico with essential services.' On April 9, 2016, the Puerto Rican governor invoked emergency authorities to maintain public operations."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2016-04-11
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Debt Limit Since 2011 [October 28, 2015]
"The Constitution grants Congress the power to borrow money on the credit of the United States--one part of its power of the purse--and thus mandates that Congress exercise control over federal debt. Control of debt policy has at times provided Congress with a means of raising concerns regarding fiscal policies. Debates over federal fiscal policy have been especially animated in recent years. The accumulation of federal debt accelerated in the wake of the 2007-2008 financial crisis and subsequent recession. Rising debt levels, along with continued differences in views of fiscal policy, led to a series of contentious debt limit episodes in recent years. In 2011, federal debt had reached its legal limit on May 16, prompting then Treasury Secretary Timothy Geithner to declare a debt issuance suspension period, allowing certain extraordinary measures to extend Treasury's borrowing capacity. That debt limit episode was resolved on August 2, 2011, when President Obama signed the Budget Control Act of 2011 (BCA; S. 365; P.L. 112-25). The BCA included provisions aimed at deficit reduction and allowing the debt limit to rise in three stages, the latter two subject to congressional disapproval. Once the BCA was enacted, a presidential certification triggered a $400 billion increase, raising the debt limit to $14,694 billion, and a second $500 billion increase on September 22, 2011, as a disapproval measure (H.J.Res. 77) only passed the House. A January 12, 2012, presidential certification triggered a third, $1,200 billion increase on January 28, 2012, although the House passed a disapproval measure."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2015-10-28
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Debt Limit: History and Recent Increases [October 1, 2015]
"Congress has always restricted federal debt. The Second Liberty Bond Act of 1917 included an aggregate limit on federal debt as well as limits on specific debt issues. Through the 1920s and 1930s, Congress altered the form of those restrictions to give the U.S. Treasury more flexibility in debt management and to allow modernization of federal financing. In 1939, a general limit was placed on federal debt. Federal debt accumulates when the government sells debt to the public to finance budget deficits and to meet federal obligations or when it issues debt to government accounts, such as the Social Security, Medicare, and Transportation trust funds. Total federal debt is the sum of debt held by the public and debt held by government accounts. Surpluses reduce debt held by the public, while deficits raise it."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2015-10-01
