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1 [1] (December 19, 2017)

handle is hein.crs/crsmthmbdpf0001 and id is 1 raw text is: CRS INSIGHT Extraordinary Measures and the Debt Limit December 19, 2017 (IN 10837) Related Authors I ran A -Dricse * JQ1ep S Hughes, Grant A. Driessen, Analyst in Public Finance (gdriessen(dcrs lc. gy, 7-775 7) Joseph S. Hughes, Research Assistant GhughQsAcrsl bcgo, 7-0952) The statutory debt limit was reinstated on December 9, 2017, at a level that precisely accommodated the federal borrowing undertaken to that date. On December 11 and 12, 2017, Scrt Mnuhin anm n that the Treasury would implement extraordinary measures that delay when the debt limit will bind. Additionally, on December 8, 2017, the seurities to extend the Treasury's ability to meet statutory spending requirements without defaulting on its debt obligations. This Insight briefly examines the debt limit and the use of extraordinary measures, and will be updated periodically to reflect changes in the status of federal borrowing. 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 Extraordinary Me a reL 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.

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