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• Debt Limit Since 2011 [September 11, 2015]

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  "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

  2015-09-11
• Puerto Rico's Current Fiscal Challenges: In Brief [August 18, 2015]

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  "The government of Puerto Rico faces multiple fiscal challenges in coming weeks and months. Concerns regarding the sustainability of Puerto Rico's public finances have intensified over the past year, despite several measures taken by the island's government to reduce spending, increase revenues, and restructure its obligations. Puerto Rico faces several fiscal hurdles in 2015. The island's central government and its public corporations face substantial debt service costs. The Puerto Rican government, which has faced major liquidity challenges in recent years, recently warned that it may 'lack sufficient resources to fund all necessary governmental programs and services as well as meet debt service obligations for fiscal year 2016,' although it had contended that it has sufficient funds available. Much of the Puerto Rican government's revenue stream for the first part of its fiscal year, which began on July 1, is earmarked to redeem revenue bonds. At the beginning of August 2015, Puerto Rico did not make a full interest and principal payment due on bonds issued by the Public Finance Corporation, a subsidiary of the island's Government Development Bank."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew

  2015-08-18
• Debt Limit Since 2011 [August 14, 2015]

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  "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. Federal debt again reached its limit on December 31, 2012, and extraordinary measures were then used to allow payment of government obligations until February 4, 2013, when H.R. 325, which suspended the debt limit until May 19, 2013, was signed into law (P.L. 113-3). As of May 19, the debt limit was set at $16,699 billion and extraordinary measures were again employed. On September 25, Treasury Secretary Lew notified Congress that the government would exhaust its borrowing capacity around October 17."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew

  2015-08-14
• Puerto Rico's Current Fiscal Challenges: In Brief [July 7, 2015]

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  "The government of Puerto Rico faces multiple fiscal challenges in coming weeks and months. Concerns regarding the sustainability of Puerto Rico's public finances have intensified over the past year, despite several measures taken by the island's government to reduce spending, increase revenues, and restructure its obligations. Puerto Rico faces several fiscal hurdles in 2015. The island's central government and its public corporations face substantial debt service costs. The Puerto Rican government, which has faced major liquidity challenges in recent years, recently warned that it may 'lack sufficient resources to fund all necessary governmental programs and services as well as meet debt service obligations for fiscal year 2016,' although it had contended that it has sufficient funds available. Much of the Puerto Rican government's revenue stream for the first part of its fiscal year, which began on July 1, is earmarked to redeem revenue bonds. On June 29, 2015, Puerto Rico's governor, Alejandro García Padilla, stated during a televised address that 'the debt is not payable.' García Padilla said his administration would seek concessions from the island's creditors as part of a new fiscal strategy, which would be developed by a newly established working group on economic recovery and debt restructuring. On the same day, the Puerto Rican government released a report it had commissioned from three former International Monetary Fund economists. The report described severe short-term funding challenges as well as longstanding issues with key parts of the Puerto Rican economy and public sector."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew

  2015-07-07
• Debt Limit Since 2011 [March 26, 2015]

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  "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. The debt limit was suspended through March 15, 2015. The next day the limit was set at $18.1 trillion and Treasury Secretary Jacob Lew invoked authorities to carry out extraordinary measures to meet federal obligations. Independent forecasters expect that the U.S. Treasury will be able to pay federal obligations until October or even November 2015. Those forecasts, however, are subject to significant uncertainties. Total federal debt can increase in two ways. First, debt increases when the government sells debt to the public to finance budget deficits and acquire the financial resources needed to meet its obligations. This increases debt held by the public. Second, debt increases 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. This increases debt held by government accounts. 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

  2015-03-26
• Mandatory Spending Since 1962 [March 18, 2015]

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  "Federal spending is divided into three broad categories: discretionary spending, mandatory spending, and net interest. Mandatory spending is composed of budget outlays controlled by laws other than appropriation acts, including federal spending on entitlement programs. Entitlement programs such as Social Security and Medicare make up the bulk of mandatory spending. […] Over the long term, projections suggest that if current policies remain unchanged, the United States could face a major fiscal imbalance, largely due to rising health care costs and impending baby boomer retirements. Federal mandatory spending on health care is projected to expand from 5% of GDP[Gross Domestic Product] in FY2014 to 14% in FY2089 according to Congressional Budget Office's (CBO) extended baseline projection. Social Security is projected to grow from 5% of GDP in FY2014 to 7% of GDP by FY2089. The share of mandatory spending continues to increase as a portion of total federal spending. Because discretionary spending is a smaller proportion of total federal outlays compared to mandatory spending, some budget experts contend that any significant reductions in federal spending must include cuts in entitlement spending. Other budget and social policy experts contend that cuts in entitlement spending could compromise their goals: the economic security of the elderly and the poor. This report will be updated annually."

  Library of Congress. Congressional Research Service

  Levit, Mindy R.; Austin, D. Andrew; Stupak, Jeffrey M.

  2015-03-18
• Debt Limit Since 2011 [March 9, 2015]

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  From the report 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 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. [...] The current debt limit suspension extends through Sunday, March 15, 2015. The next day, the Treasury Secretary can employ extraordinary measures to meet federal obligations. Independent forecasters expect that the U.S. Treasury will be able to pay federal obligations until October or even November 2015. Those forecasts, however, are subject to significant uncertainties. Total federal debt can increase in two ways. First, through debt increases when the government sells debt to the public to finance budget deficits and acquire the financial resources needed to meet its obligations. This increases 'debt held by the public'. Second, debt increases 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. This increases 'debt held by government accounts'. 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

  2015-03-09
• Discretionary Budget Authority by Subfunction: An Overview [February 5, 2015]

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  From the Document: "This report provides a graphical overview of historical trends in discretionary budget authority (BA) from FY1976 through FY2014, preliminary estimates for FY2015 spending, and the levels reflecting the President's proposals for FY2016 through FY2020 using data from the FY2016 budget submission released on February 2, 2015. Spending in this report is measured and illustrated in terms of discretionary budget authority as a percentage of gross domestic product (GDP). Measuring spending as a percentage of GDP in effect controls for inflation and population increases. A flat line on such graphs indicates spending that increased at the same rate as overall economic growth. 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 possible program cuts and tax expenditures. […] Discretionary spending is provided and controlled through appropriations acts, which provide budget authority to federal agencies to fund many of the activities commonly associated with such federal government functions as running executive branch agencies, congressional offices and agencies, and international operations of the government. Essentially all spending on federal wages and salaries is discretionary."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew

  2015-02-05
• Budget Control Act and Trends in Discretionary Spending [November, 26, 2014]

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  "Discretionary spending is provided and controlled through appropriations acts, which fund many of the activities commonly associated with such federal government functions as running executive branch agencies, congressional offices and agencies, and international operations of the government. Essentially all spending on federal wages and salaries is discretionary. Spending can be measured by budget authority (BA; what agencies can legally obligate the government to pay) or outlays (disbursements from the U.S. Treasury). This report mostly discusses trends in outlays. Federal spending in fiscal year (FY) 2014 was just over a fifth (20.3%) of the U.S. economy, as measured as a share of gross domestic product (GDP), which is close to its average share since FY1962. Discretionary spending accounted for 33% of total outlays in FY2014 ($3,504 billion), well below mandatory spending's share (60% of outlays in FY2014). Weak economic conditions in recent years as well as demographic trends have increased spending on mandatory income support and retirement programs, while policy makers have acted to constrain the growth of discretionary spending. As interest rates return to more normal levels as the recovery proceeds, net interest costs--6.6% of federal outlays in FY2014--are projected to rise. […] The direction of fiscal policy has been the focus of contention among macroeconomists. Some contend that more spending would help reduce high unemployment levels, while others call for imposing greater budgetary stringency. Growth in entitlement program outlays, in the absence of new revenue measures, may put severe pressure on discretionary spending in the future unless policy changes are enacted."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew

  2014-11-26
• Budget Control Act and Trends in Discretionary Spending [April 2, 2014]

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  "Discretionary spending is provided and controlled through appropriations acts, which fund many of the activities commonly associated with such federal government functions as running executive branch agencies, congressional offices and agencies, and international operations of the government. Essentially all spending on federal wages and salaries is discretionary. Spending can be measured by budget authority (BA; what agencies can legally obligate the government to pay) or outlays (disbursements from the U.S. Treasury). This report mostly discusses trends in outlays. Federal spending in fiscal year (FY) 2013 was just over a fifth (20.8%) of the U.S. economy, as measured as a share of gross domestic product (GDP), which is close to its average share since FY1962. Discretionary spending accounted for 35% of total outlays in FY2013 ($3,455 billion), well below mandatory spending's share (59% of outlays in FY2013). Weak economic conditions in recent years as well as demographic trends have increased spending on mandatory income support and retirement programs, while policy makers have acted to constrain the growth of discretionary spending. As interest rates return to more normal levels as the recovery proceeds, net interest costs--6.4% of federal outlays in FY2013--are projected to rise sharply."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew

  2014-04-02
• Mandatory Spending Since 1962 [March 10, 2014]

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  "Federal spending is divided into three broad categories: discretionary spending, mandatory spending, and net interest. Mandatory spending is composed of budget outlays controlled by laws other than appropriation acts, including federal spending on entitlement programs. Entitlement programs such as Social Security and Medicare make up the bulk of mandatory spending. […] Over the long term, projections suggest that if current policies remain unchanged, the United States could face a major fiscal imbalance, largely due to rising health care costs and impending baby boomer retirements. Federal mandatory spending on health care is projected to expand from 4.7% of GDP [Gross Domestic Product] in FY2013 to 13.5% in FY2085 according to CBO's extended baseline projection. Social Security is projected to grow from 4.9% of GDP in FY2013 to 6.7% of GDP by FY2085. The share of mandatory spending continues to increase as a portion of total federal spending. Because discretionary spending is a smaller proportion of total federal outlays compared to mandatory spending, some budget experts contend that any significant reductions in federal spending must include cuts in entitlement spending. Other budget and social policy experts contend that cuts in entitlement spending could compromise their goals: the economic security of the elderly and the poor. This report will be updated annually."

  Library of Congress. Congressional Research Service

  Levit, Mindy R.; Austin, D. Andrew

  2014-03-10
• Debt Limit Since 2011 [February 20, 2014]

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  "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

  2014-02-20
• Trends in Discretionary Spending [February 18, 2014]

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  "Discretionary spending is provided and controlled through appropriations acts, which fund many of the activities commonly associated with such federal government functions as running executive branch agencies, congressional offices and agencies, and international operations of the government. Essentially all spending on federal wages and salaries is discretionary. Spending can be measured by budget authority (BA; what agencies can legally obligate the government to pay) or outlays (disbursements from the U.S. Treasury). This report mostly discusses trends in outlays. Federal spending in fiscal year (FY) 2013 was just over a fifth (20.8%) of the U.S. economy, as measured as a share of gross domestic product (GDP), which is close to its average share since 1962. (Years denote federal fiscal years unless otherwise noted.) Discretionary spending accounted for 35% of total outlays in 2013 ($3,454 billion), well below mandatory spending's share (59% of outlays in 2013). Weak economic conditions in recent years as well as long-term demographic trends have increased spending on mandatory income support and retirement programs, while policy makers have acted to constrain the growth of discretionary spending. Net interest costs were 6.1% of federal outlays in 2013, but are projected to rise sharply."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew

  2014-02-18
• Debt Limit Since 2011 [February 12, 2014]

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  "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. Federal debt again reached its limit on December 31, 2012, and extraordinary measures were then used to allow payment of government obligations until February 4, 2013, when H.R. 325, which suspended the debt limit until May 19, 2013, was signed into law (P.L. 113-3). As of May 19, the debt limit was set at $16,699 billion and extraordinary measures were again employed. On September 25, Treasury Secretary Lew notified Congress that the government would exhaust its borrowing capacity around October 17."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew

  2014-02-12
• Discretionary Budget Authority by Subfunction: An Overview [January 24, 2014]

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  From the Document: "This report provides a graphical overview of historical trends in discretionary budget authority (BA) from FY1976 through FY2012, preliminary estimates for FY2013 spending, and the levels consistent with the President's proposals for FY2014 through FY2018 using data from President Obama's FY2014 budget submission that was released on April 10, 2013. Spending caps and budget enforcement mechanisms established in the Budget Control Act of 2011 (P.L. [Public Law] 112-25; BCA) strongly affected the FY2013 and FY2014 budget cycles. Congress modified BCA caps at the beginning of January 2013 to scale down the size of discretionary spending reductions for FY2013 and in December 2013 to scale down the size of reductions slated for FY2014 and FY2015. As the 113th Congress prepares to consider funding levels for FY2015 and beyond, past spending trends may help frame policy discussions. […] Spending in this report is measured and illustrated in terms of discretionary budget authority as a percentage of gross domestic product (GDP). Measuring spending as a percentage of GDP in effect controls for inflation and population increases. A flat line on such graphs indicates that spending in that category has been increasing at the same rate as overall economic growth. Graphs were updated to reflect the revisions to national income accounts released by the Department of Commerce's Bureau of Economic Analysis in July 2013."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew

  2014-01-24
• Trends in Discretionary Spending [January 24, 2014]

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  "Discretionary spending is provided and controlled through appropriations acts, which fund many of the activities commonly associated with such federal government functions as running executive branch agencies, congressional offices and agencies, and international operations of the government. Essentially all spending on federal wages and salaries is discretionary. Spending can be measured by budget authority (BA; what agencies can legally obligate the government to pay) or outlays (disbursements from the U.S. Treasury). This report mostly discusses trends in outlays. […] The Budget Control Act of 2011 (BCA; P.L. 112-25) reintroduced statutory limits on spending by imposing a series of caps on discretionary BA from FY2012 through FY2021. The American Taxpayer Relief Act of 2012 (ATRA; P.L. 112-240) modified limits for FY2013 and FY2014. The FY2013 full-year funding bill (H.R. 933; P.L. 113-6) enacted March 26, 2013, conformed to those limits. The Bipartisan Budget Act (H.J.Res. 59; P.L. 113-67) also modified BCA limits for FY2014 and FY2015. On January 15, 2014, the House approved the Consolidated Appropriations Act, 2014 (H.R. 3547; P.L. 113-76), to provide funding within those limits for the rest of FY2014. The Senate passed it on the next day, and the President signed it into law the following day. The direction of fiscal policy has been the focus of contention among macroeconomists. Some contend that more spending would help reduce high unemployment levels, while others call for imposing greater budgetary stringency. Over the long term, future growth in entitlement program outlays may put severe pressure on discretionary spending unless policy changes are enacted or federal revenues are increased. This report will be updated as events warrant."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew

  2014-01-24
• Debit Limit: History and Recent Increases [October 15, 2013]

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  "Total federal debt can increase in two ways. First, debt increases when the government sells debt to the public to finance budget deficits and acquire the financial resources needed to meet its obligations. This increases debt held by the public. Second, debt increases 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. This increases debt held by government accounts. 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. […] 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. […] Congress, aside from two measures noted above, has modified the debt limit 10 times since 2001, due to persistent deficits and additions to federal trust funds. Congress raised the limit in June 2002, May 2003, November 2004, March 2006, and September 2007. The 2007-2008 fiscal crisis and subsequent economic slowdown led to sharply higher deficits in recent years, which led to a series of debt limit increases."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew; Levit, Mindy R.

  2013-10-15
• Debt Limit: History and Recent Increases [September 25, 2013]

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  "Total federal debt can increase in two ways. First, debt increases when the government sells debt to the public to finance budget deficits and acquire the financial resources needed to meet its obligations. This increases debt held by the public. Second, debt increases 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. This increases debt held by government accounts. 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."

  Library of Congress. Congressional Research Service

  Levit, Mindy R.; Austin, D. Andrew

  2013-09-25
• Debt Limit: History and Recent Increases [August 27, 2013]

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  "Total federal debt can increase in two ways. First, debt increases when the government sells debt to the public to finance budget deficits and acquire the financial resources needed to meet its obligations. This increases 'debt held by the public'. Second, debt increases 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. This increases 'debt held by government accounts'. 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. [...] 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."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew; Levit, Mindy R.

  2013-08-27
• Trends in Discretionary Spending [May 30, 2013]

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  "Discretionary spending cover the costs of the routine activities commonly associated with such federal government functions as running executive branch agencies, congressional offices and agencies, and international operations of the government. Essentially all spending on federal wages and salaries is discretionary. Discretionary spending also funds grants, purchases of equipment and other assets, and contractor services that support various federal programs and activities. Congress provides and controls discretionary funding through annual appropriations acts, which grant federal agencies the legal authority to obligate the U.S. government to make payments. Budget authority (BA) is the amount that can be legally obligated. Outlays are the payments made by the U.S. Treasury to satisfy those obligations. This report mostly discusses trends in outlays."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew

  2013-05-30
• Debt Limit: History and Recent Increases [May 22, 2013]

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  "Total federal debt can increase in two ways. First, debt increases when the government sells debt to the public to finance budget deficits and acquire the financial resources needed to meet its obligations. This increases 'debt held by the public'. Second, debt increases 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. This increases 'debt held by government accounts'. 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. On August 2, 2011, President Obama signed the Budget Control Act of 2011 (BCA; S. 365; P.L. [Public Law] 112-25), after an extended debt limit episode. The federal debt had reached its legal limit on May 16, 2011, prompting Treasury Secretary Timothy Geithner to declare a debt issuance suspension period, allowing certain extraordinary measures to extend Treasury's borrowing capacity. The BCA included provisions aimed at deficit reduction and allowing the debt limit to rise between $2,100 billion and $2,400 billion 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. [House Joint Resolution] 77) only passed the House."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew; Levit, Mindy R.

  2013-05-22
• Debt Limit: History and Recent Increases [May 3, 2013]

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  "Total federal debt can increase in two ways. First, debt increases when the government sells debt to the public to finance budget deficits and acquire the financial resources needed to meet its obligations. This increases 'debt held by the public'. Second, debt increases 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. This increases 'debt held by government accounts'. 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."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew; Levit, Mindy R.

  2013-05-03
• Trends in Discretionary Spending [April 29, 2013]

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  "Discretionary spending is provided and controlled through appropriations acts, which fund many of the activities commonly associated with such federal government functions as running executive branch agencies, congressional offices and agencies, and international operations of the government. Essentially all spending on federal wages and salaries is discretionary. Spending can be measured by budget authority (BA; what agencies can legally obligate the government to pay) or outlays (disbursements from the U.S. Treasury). This report mostly discusses trends in outlays. Federal spending in fiscal year (FY) 2012 was just under a quarter (23%) of the U.S. economy, as measured as a share of gross domestic product (GDP). Federal spending since 1962 has averaged about a fifth of GDP. (Years denote federal fiscal years unless otherwise noted.) Discretionary spending accounted for 34% of total outlays in 2012 ($3,538 billion), well below mandatory spending's share (60% of outlays in 2012). Weak economic conditions in recent years as well as long-term demographic trends have increased spending on mandatory income support and retirement programs, while policy makers have taken steps to constrain the growth of discretionary spending. Net interest costs were 6.3% of federal outlays in 2012, but are projected to rise sharply as interest rates return to historic levels."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew

  2013-04-29
• Discretionary Budget Authority by Subfunction: An Overview [April 25, 2013]

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  "President Obama's FY2014 budget submission was released on April 10, 2013. Using data from that budget submission, this report provides a graphical overview of historical trends in discretionary budget authority (BA) from FY1976 through FY2012, preliminary estimates for FY2013 spending, and the levels consistent with the President's proposals for FY2014 through FY2018. Spending caps and budget enforcement mechanisms established in the Budget Control Act of 2011 (P.L. 112-25; BCA) strongly affected the FY2013 budget cycle and are likely to shape the FY2014 budget cycle as well. BCA provisions include separate caps on discretionary defense and non-defense spending. As the 113th Congress considers funding levels for FY2014 and beyond, past spending trends may prove useful in framing policy discussions. For example, rapid growth in national defense and other security spending in the past decade has played an important role in fiscal discussions. The American Recovery and Reinvestment Act of 2009 (P.L. 111-5; ARRA) funded sharp increases in spending on education, energy, and other areas. Since FY2010, however, base defense discretionary spending has essentially been held flat and non-defense discretionary spending has been reduced significantly. The base defense budget excludes war funding (Overseas Contingency Operations/Global War on Terror). This report may provide a starting point for discussions about spending trends and federal priorities, but it does not attempt to explain spending patterns in each policy area. Other CRS products are available to provide insights into those spending trends in specific functional areas."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew

  2013-04-25
• Trends in Discretionary Spending [April 15, 2013]

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  "Discretionary spending is provided and controlled through appropriations acts, which fund many of the activities commonly associated with such federal government functions as running executive branch agencies, congressional offices and agencies, and international operations of the government. Essentially all spending on federal wages and salaries is discretionary. Spending can be measured by budget authority (BA; what agencies can legally obligate the government to pay) or outlays (disbursements from the U.S. Treasury). This report mostly discusses trends in outlays. Federal spending in fiscal year (FY) 2012 was just under a quarter (23%) of the U.S. economy, as measured as a share of gross domestic product (GDP). Federal spending since 1962 has averaged about a fifth of GDP. (Years denote federal fiscal years unless otherwise noted.) Discretionary spending accounted for 34% of total outlays in 2012 ($3,538 billion), well below mandatory spending's share (60% of outlays in 2012). Weak economic conditions in recent years as well as long-term demographic trends have increased spending on mandatory income support and retirement programs, while policy makers have taken steps to constrain the growth of discretionary spending. Net interest costs were 6.3% of federal outlays in 2012, but are projected to rise sharply as interest rates return to historic levels."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew

  2013-04-15
• Debt Limit: History and Recent Increases [April 10, 2013]

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  "Total federal debt can increase in two ways. First, debt increases when the government sells debt to the public to finance budget deficits and acquire the financial resources needed to meet its obligations. This increases 'debt held by the public'. Second, debt increases 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. This increases 'debt held by government accounts'. 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. […] Congress has always placed restrictions on federal debt. The form of debt restrictions, structured as amendments to the Second Liberty Bond Act of 1917, evolved into a general debt limit in 1939. Congress has voted to raise the debt limit 11 times since 2001, due to persistent deficits and additions to federal trust funds. Congress raised the limit in June 2002, and by December 2002 the U.S. Treasury asked Congress for another increase, which passed in May 2003. In June 2004, the U.S. Treasury asked for another debt limit increase and again in October 2004, which was enacted on November 19, 2004. In 2005, reconciliation instructions in the FY2006 budget resolution (H.Con.Res. 95) included a debt limit increase. After warnings from the U.S. Treasury, Congress passed an increase that the President signed on March 20. In 2007, Congress approved legislation (H.J.Res. 43) to raise the debt limit by $850 billion to $9,815 billion that the President signed September 29, 2007."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew; Levit, Mindy R.

  2013-04-10
• Debt Limit: History and Recent Increases [February 7, 2013]

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  "Total federal debt can increase in two ways. First, debt increases when the government sells debt to the public to finance budget deficits and acquire the financial resources needed to meet its obligations. This increases 'debt held by the public'. Second, debt increases 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. This increases 'debt held by government accounts'. 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. […] Congress has always placed restrictions on federal debt. The form of debt restrictions, structured as amendments to the Second Liberty Bond Act of 1917, evolved into a general debt limit in 1939. Congress has voted to raise the debt limit 11 times since 2001, due to persistent deficits and additions to federal trust funds. Congress raised the limit in June 2002, and by December 2002 the U.S. Treasury asked Congress for another increase, which passed in May 2003. In June 2004, the U.S. Treasury asked for another debt limit increase and again in October 2004, which was enacted on November 19, 2004. In 2005, reconciliation instructions in the FY2006 budget resolution (H.Con.Res. 95) included a debt limit increase. After warnings from the U.S. Treasury, Congress passed an increase that the President signed on March 20. In 2007, Congress approved legislation (H.J.Res. 43) to raise the debt limit by $850 billion to $9,815 billion that the President signed September 29, 2007."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew; Levit, Mindy R.

  2013-02-07
• Debt Limit: History and Recent Increases [January 31, 2013]

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  "Total federal debt can increase in two ways. First, debt increases when the government sells debt to the public to finance budget deficits and acquire the financial resources needed to meet its obligations. This increases 'debt held by the public'. Second, debt increases 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. This increases 'debt held by government accounts'. 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. […] Congress has always placed restrictions on federal debt. The form of debt restrictions, structured as amendments to the Second Liberty Bond Act of 1917, evolved into a general debt limit in 1939. Congress has voted to raise the debt limit 11 times since 2001, due to persistent deficits and additions to federal trust funds. Congress raised the limit in June 2002, and by December 2002 the U.S. Treasury asked Congress for another increase, which passed in May 2003. In June 2004, the U.S. Treasury asked for another debt limit increase and again in October 2004, which was enacted on November 19, 2004. In 2005, reconciliation instructions in the FY2006 budget resolution (H.Con.Res. 95) included a debt limit increase. After warnings from the U.S. Treasury, Congress passed an increase that the President signed on March 20. In 2007, Congress approved legislation (H.J.Res. 43) to raise the debt limit by $850 billion to $9,815 billion that the President signed September 29, 2007."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew; Levit, Mindy R.

  2013-01-31
• Debt Limit: History and Recent Increases [January 10, 2013]

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  "Total federal debt can increase in two ways. First, debt increases when the government sells debt to the public to finance budget deficits and acquire the financial resources needed to meet its obligations. This increases 'debt held by the public'. Second, debt increases 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. This increases 'debt held by government accounts'. 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. […] Congress has always placed restrictions on federal debt. The form of debt restrictions, structured as amendments to the Second Liberty Bond Act of 1917, evolved into a general debt limit in 1939. Congress has voted to raise the debt limit 11 times since 2001, due to persistent deficits and additions to federal trust funds. Congress raised the limit in June 2002, and by December 2002 the U.S. Treasury asked Congress for another increase, which passed in May 2003. In June 2004, the U.S. Treasury asked for another debt limit increase and again in October 2004, which was enacted on November 19, 2004. In 2005, reconciliation instructions in the FY2006 budget resolution (H.Con.Res. 95) included a debt limit increase. After warnings from the U.S. Treasury, Congress passed an increase that the President signed on March 20. In 2007, Congress approved legislation (H.J.Res. 43) to raise the debt limit by $850 billion to $9,815 billion that the President signed September 29, 2007."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew; Levit, Mindy R.

  2013-01-10
• Debt Limit: History and Recent Increases [December 27, 2012]

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  "The statutory debt limit applies to almost all federal debt. The limit applies to federal debt held by the public (that is, debt held outside the federal government itself) and to federal debt held by the government's own accounts. Federal trust funds, such as Social Security, Medicare, Transportation, and Civil Service Retirement accounts, hold most of this internally held debt. The government's surpluses or deficits determine essentially all of the change in debt held by the public. The government's on-budget fiscal balance, which excludes a U.S. Postal Service net surplus or deficit and a large Social Security surplus of payroll taxes net of paid benefits, does not directly affect debt held in government accounts. Increases or decreases in debt held by government accounts result from net financial flows into accounts holding the debt, such as the Social Security Trust Fund. Legal requirements and government accounting practices also affect levels of debt held by government accounts. On August 2, 2011, President Obama signed into law the Budget Control Act of 2011 (BCA; S. 365), after an extended debt limit episode. The federal debt reached its statutory limit on May 16, 2011, prompting Treasury Secretary Timothy Geithner to declare a debt issuance suspension period, allowing certain extraordinary measures to extend Treasury's borrowing capacity. The BCA included provisions aimed at deficit reduction and would allow the debt limit to rise between $2,100 billion and $2,400 billion in three stages, with the latter two subject to congressional disapproval. All three increases, totaling $2,100 billion, have occurred."

  Library of Congress. Congressional Research Service

  Austin, D. Andrew; Levit, Mindy R.

  2012-12-27