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1 [1] (December 8, 2017)

handle is hein.crs/crsmthmbdkc0001 and id is 1 raw text is: CRS INSIGHT Extraordinary Measures and the Debt Limit December 8, 2017 (IN10837) Related Authors I razntA Driessn Grant A. Driessen, Analyst in Public Finance (Ldiessen 7krs lc gov, 7-775 7) Joseph S. Hughes, Research Assistant h, 7-0952) The statutory debt limit is scheduled to be reinstated on December 9, 2017, at a level that precisely accommodates the federal borrowing undertaken to date. If Congress has not taken action to modify the debt limit by that time, the Treasury Secretary may choose to implement extraordinary measures that delay when the debt limit will bind under current law. This Insight briefly examines the debt limit and the use of extraordinary measures. What Is the Debt Limit? As part of its power of the purse, Congress uses the statutory debt limit (codified in 31 U.S.C. §3101) as a means of restricting federal debt. Debt subject to the limit is more than 99% of total federal debt, and includes debt held by the public (which is used to finance budget deficits) and debt issued to federal government accounts (which is used to meet federal obligations). The debt limit acts as a congressional check on recent revenue and expenditure trends, though decisions affecting debt levels may have been agreed to by Congress and the Administration well in advance of debt limit deliberations. Some past debt limit legislation has linked debt limit increases with other fiscal policy proposals. What Are Extraordinary Measures? Extraordinary measures represent a series of actions that postpone when Congress must act on debt limit legislation. The authority for using extraordinary measures rests with the Treasury Secretary (codified in 5 U.S.C. §8348 and 5 U.S.C. § 8909). Invoking extraordinary measures has delayed required action on the debt limit by periods ranging from a few weeks to several months, depending on when such measures were enacted (see the How Long Do Extraordina M sre Ls section). Accounts and members of the public that are affected by extraordinary measures must be compensated for the delay in payment that resulted from such actions when the debt limit is subsequently modified. b provides a description of the extraordinary measures used in 2015 and 2017. Those measures were estimated to provide the Treasury with roughly $350-$400 billion in additional headroom under the debt limit in 2017.

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