Legislative Procedures for Adjusting the
Public Debt Limit: A Brief Overview
Bill Heniff Jr.
Analyst on Congress and the Legislative Process
November 26, 2012
Congressional Research Service
7-5700
www.crs.gov
RS21519
CRS Report for Congress
Prepared for Members and Committees of Congress
Legislative Procedures for Adjusting the Public Debt Limit: A Brief Overview
Summary
Almost all borrowing by the federal government is conducted by the Treasury Department, within
the restrictions established by a single, statutory limit on the total amount of debt that may be
outstanding at any time. Most adjustments to the debt limit have been increases, but sometimes
the change has been a reduction.
The annual budget resolution is required to include appropriate levels of the public debt for each
fiscal year covered by the resolution. In some years, the budget resolution includes amounts of
the public debt specifically subject to limit or amounts by which the public debt subject to limit is
recommended to be changed. Because a budget resolution does not become law, Congress and the
President must enact legislation to implement budget resolution policies. Under current legislative
procedures, the House and Senate may develop and consider legislation adjusting the debt limit in
one of two ways: (1) under regular legislative procedures in both chambers, either as freestanding
legislation or as a part of a measure dealing with other topics; or (2) as part of the budget
reconciliation process provided for under the Congressional Budget Act of 1974. The House also
has initiated debt limit legislation under its former House Rule XXVIII (the so-called “Gephardt
rule”); the House repealed the rule at the beginning of the 112th Congress.
During the period from 1940 to the present, Congress and the President have enacted a total of 92
measures adjusting the public debt limit—73 under regular legislative procedures in both
chambers, 15 under the Gephardt rule, and 4 under reconciliation procedures.
On August 2, 2011, President Barack Obama signed into law the most recent measure adjusting
the public debt limit, as part of the Budget Control Act of 2011 (P.L. 112-25). The act established
special procedures for congressional disapproval of the increases to the debt limit authorized by
the act. The act authorized increases to the debt limit by at least $2.1 trillion (and up to $2.4
trillion), in three installments: (1) an initial increase of $400 billion; (2) an additional increase of
$500 billion; and (3) an additional increase of an amount between $1.2 trillion and $1.5 trillion,
depending on certain subsequent actions. Although the initial increase in the debt limit of $400
billion was effective immediately and not subject to congressional disapproval, the subsequent
additional increases were subject to congressional disapproval. In both cases, Congress did not
enact a disapproval resolution. Therefore, the debt limit was increased by the additional amounts
of $500 billion and $1.2 trillion, as provided by the act.
This report will be updated as developments warrant.
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Legislative Procedures for Adjusting the Public Debt Limit: A Brief Overview
Contents
Introduction...................................................................................................................................... 1
Legislative Procedures for Adjusting the Public Debt Limit ........................................................... 1
Regular Legislative Procedures in Both Chambers ................................................................... 2
The Budget Reconciliation Process ........................................................................................... 2
“Gephardt Rule” Procedures ..................................................................................................... 3
Disapproval Procedures Under the Budget Control Act of 2011 ..................................................... 4
Measures Adjusting the Public Debt Limit ...................................................................................... 5
Figures
Figure 1. Number of Measures Adjusting the Public Debt Limit Enacted by Decade:
1940s to the Present ...................................................................................................................... 6
Tables
Table 1. Legislation Adjusting the Public Debt Limit Enacted from 1993 to the Present .............. 7
Contacts
Author Contact Information............................................................................................................. 8
Acknowledgments ........................................................................................................................... 8
Congressional Research Service
Legislative Procedures for Adjusting the Public Debt Limit: A Brief Overview
Introduction
Almost all borrowing by the federal government is conducted by the Treasury Department, within
the restrictions established by a single, statutory limit on the total amount of debt that may be
outstanding at any time.1 In a few instances, agencies such as the Tennessee Valley Authority
operate within their own borrowing limits established separately in law. For years, the public debt
limit has been codified in Section 3101(b) of Title 31, Public Debt Limit: A Brief Overview
August 6, 2015
(RS21519)
Summary
Nearly all of the outstanding debt of the federal government is subject to a statutory limit, which is set forth as a dollar limitation in 31 U.S.C. 3101(b). From time to time, Congress considers and passes legislation to adjust or suspend this limit.
The annual budget resolution is required to include appropriate levels of the public debt for each fiscal year covered by the resolution. The budget resolution, however, does not become law. Therefore, the enactment of subsequent legislation is necessary in order to implement budget resolution policies, including changes to the statutory limit on the public debt. In addition, Congress may consider adjustments to the public debt limit outside the context of the budget resolution, such as when the House and Senate are unable to agree on a budget resolution or when the current debt limit is not sufficient to meet existing financial obligations.
Under current legislative procedures, the House and Senate may originate and consider legislation adjusting the debt limit in several different ways. They may consider such legislation under regular legislative procedures, either as freestanding legislation or as a part of a measure dealing with other topics. Alternatively, they may change the debt limit as part of the budget reconciliation process provided for under the Congressional Budget Act of 1974. The House also has originated debt limit legislation under its former House Rule XXVIII (the so-called "Gephardt rule"); the House repealed the rule at the beginning of the 112th Congress (2011-2012). In addition, Congress has twice established special procedures for congressional disapproval of adjustments to the debt limit authorized by certain statutes.
During the period from 1940 to the present, Congress and the President have enacted a total of 95 measures adjusting the public debt limit—76 under regular legislative procedures in both chambers, 15 under the Gephardt rule, and four under reconciliation procedures.
This report will be updated as developments warrant.
Legislative Procedures for Adjusting the Public Debt Limit: A Brief Overview
Introduction
Nearly all of the outstanding debt of the federal government is subject to a statutory limit.1 For years, the public debt limit has been codified in Section 3101(b) of Title 31 of the United States Code. Periodic adjustments
in to the debt limit
taketypically have taken the form of amendments to 31 U.S.C. 3101(b), usually by striking the
current dollar limitation and inserting a new one. In
the past, such changes to the debt limit have
been either permanent or temporary.
The Congressional Budget Act of 1974 (P.L. 93-344, 2 U.S.C. 601-688) requires the House and
Senate to adopt a concurrent resolution on the budget each year before considering revenue,
spending, and debt limit legislation. In addition to recommending the appropriate levels of total
revenues, spending, and the deficit or surplus, the budget resolution also specifies the appropriate
level of the public debt for each fiscal year covered by the resolution. In some years, the budget
resolution includes amounts of the public debt specifically subject to limit or amounts by which
the public debt subject to limit is recommended to be changed. Inasmuch as a budget resolution
does not become law, Congress and the President must enact legislation implementing budget
resolution policies, including any needed adjustment in the debt limit. Even if a budget resolution
is not adopted by the House and Senate, as has occurred in several years, Congress and the
President may need to enact legislation increasing the statutory debt limit in order to meet
existing financial obligations.
Legislative Procedures for Adjusting the Public
Debt Limit
Under current legislative procedures, the House and Senate may develop and consider legislation
adjusting the debt limit in one of two ways: (1) under regular legislative procedures in both
chambers, either as freestanding legislation or as a part of a measure dealing with other topics; or
(2) as part of the budget reconciliation process provided for under the Congressional Budget Act
of 1974. In addition, the Budget Control Act of 2011 (P.L. 112-25), signed into law on August 2,
2011, established special procedures for congressional disapproval of the increases to the debt
limit authorized by the act. Finally, the House has initiated debt limit legislation under its former
House Rule XXVIII (the so-called “Gephardt rule”); the House repealed the rule at the beginning
of the 112th Congress.
Although the Constitution requires that revenue measures originate in the House, this requirement
is not considered to apply to debt limit measures.2 Over the years, however, most debt limit
legislation has originated in the House. In 2002 and 2004, a Senate-originated bill was the vehicle
1
For a discussion of federal debt, the debt limit, and debt management practices, see the Office of Management and
Budget, Budget of the United States Government, Fiscal Year 2013, Analytical Perspectives, Chapter 6—Federal
Borrowing and Debt, pp. 67-82. For an additional discussion of issues related to increasing the debt limit, see CRS
Report RL31967, The Debt Limit: History and Recent Increases, by D. Andrew Austin and Mindy R. Levit.
2
See the discussion under section “Other Legislation and the Origination Clause” of CRS Report RL31399, The
Origination Clause of the U.S. Constitution: Interpretation and Enforcement, by James V. Saturno.
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Legislative Procedures for Adjusting the Public Debt Limit: A Brief Overview
for the debt limit increase. The House Ways and Means Committee and the Senate Finance
Committee exercise jurisdiction over debt limit legislation.
It is extremely difficult for Congress to effectively influence fiscal and budgetary policy through
action on legislation adjusting the debt limit. The need to raise (or lower) the limit during a
session is driven by many previous decisions regarding revenues and spending stemming from
legislation enacted earlier in the session or in prior years. Nevertheless, the consideration of debt
limit legislation often is viewed as an opportunity to reexamine fiscal and budgetary policy and is
marked by controversy. Consequently, House and Senate action on legislation adjusting the debt
limit often is complicated, hindered by political difficulties, and subject to delay.
The three ways the House and Senate have developed and considered debt limit legislation, as
well as the disapproval procedures established under the Budget Control Act of 2011, are
discussed briefly below.
Regular Legislative Procedures in Both Chambers
The House and Senate may develop and consider legislation adjusting the debt limit under regular
legislative procedures in both chambers, either as freestanding legislation or as a part of a
measure dealing with other topics. The House Ways and Means Committee and the Senate
Finance Committee may originate measures adjusting the debt limit at any time. The Senate
usually acts on legislation originated by the House. In 2002 and 2004, however, the Senate
originated debt limit bills (S. 2578 and S. 2986, respectively), which became P.L. 107-199 and
P.L. 108-415, respectively.
Consideration of debt limit measures in the House usually is subject to special rules, reported by
the House Rules Committee, that may include debate limitations, restrictions on the offering of
amendments, and other expediting features. In the Senate, consideration of debt limit measures
generally is not subject to expedited procedures; nongermane amendments may be offered and
the measures may be debated at length, unless cloture is invoked or other limitations are agreed to
by unanimous consent.
In 2009, for instance, an adjustment to the public debt limit (Section 1604, Div. B, P.L. 111-5)
was considered under the regular legislative process as part of the economic stimulus legislation
considered in the early part of 2009. The House passed (on January 28) its version of the
economic stimulus legislation (H.R. 1, the American Recovery and Reinvestment Act of 2009)
without any provision increasing the public debt limit. The Senate, however, included an increase
to the public debt limit in its version passed on February 10. The House and Senate subsequently
agreed to the conference report to accompany H.R. 1, which included the Senate’s provision to
increase the public debt limit, on February 13. President Barack Obama signed the legislation on
February 17, 2009 (P.L. 111-5).
The Budget Reconciliation Process
The budget reconciliation process is an optional procedure that operates as an adjunct to the
budget resolution process; the budget reconciliation process may be used only if the House and
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Legislative Procedures for Adjusting the Public Debt Limit: A Brief Overview
Senate agree to a budget resolution that contains reconciliation directives.3 The chief purpose of
the reconciliation process is to enhance Congress’s ability to change current law to bring revenue,
mandatory spending, and debt limit levels into conformity with the policies of the budget
resolution. Reconciliation legislation is subject to expedited consideration in both chambers. In
the Senate, in particular, debate on reconciliation legislation is limited, amendments must be
germane, and extraneous matter is barred.
Although the predominant focus of reconciliation legislation has been to change revenue and
spending levels, four such measures also were used to adjust the debt limit:
•
the recent years, such legislation has taken the form of suspending the debt limit through a date certain, with an increase to the dollar limit made administratively at the end of the suspension period.2
The congressional budget process provides for the annual adoption of a concurrent resolution on the budget, which sets forth appropriate levels of the public debt—along with levels of revenues, spending, and the deficit or surplus—for the upcoming fiscal year and at least four additional years.3 The budget resolution, however, does not become law. Therefore, subsequent legislation is necessary in order to implement budget resolution policies, including changes to the statutory limit on the public debt. In addition, Congress may consider adjustments to the public debt limit outside the context of the budget resolution, such as when the House and Senate are unable to agree on a budget resolution or when the current debt limit is not sufficient to meet existing financial obligations.
Legislative Procedures for Adjusting the Public Debt Limit
Under current legislative procedures, the House and Senate may originate and consider legislation adjusting the debt limit in several different ways. They may consider such legislation under regular legislative procedures, either as freestanding legislation or as a part of a measure dealing with other topics. Alternatively, they may change the debt limit as part of the budget reconciliation process provided for under the Congressional Budget Act of 1974.4 In addition, Congress has twice established special procedures for congressional disapproval of adjustments to the debt limit authorized by certain statutes. Finally, the House has originated debt limit legislation under its former House Rule XXVIII (the so-called Gephardt rule); the House repealed the rule at the beginning of the 112th Congress (2011-2012).
Although the Constitution requires that revenue measures originate in the House, this requirement is not considered to apply to debt limit measures.5 Over the years, however, most debt limit legislation has originated in the House.6 The House Ways and Means Committee and the Senate Finance Committee exercise jurisdiction over debt limit legislation.
It is extremely difficult for Congress to effectively influence fiscal and budgetary policy through action on legislation adjusting the debt limit. The need to raise (or lower) the limit during a session is driven by many previous decisions regarding revenues and spending stemming from legislation enacted earlier in the session or in prior years. Nevertheless, the consideration of debt limit legislation often is viewed as an opportunity to reexamine fiscal and budgetary policy and is marked by controversy. Consequently, House and Senate action on legislation adjusting the debt limit often is complicated, hindered by political difficulties, and subject to delay.
The three ways the House and Senate have originated and considered debt limit legislation, as well as the congressional disapproval procedures first established under the Budget Control Act of 2011, are discussed briefly below.
Regular Legislative Procedures in Both Chambers
The House and Senate may develop and consider legislation adjusting the debt limit under regular legislative procedures in both chambers, either as freestanding legislation or as a part of a measure dealing with other topics. The House Ways and Means Committee and the Senate Finance Committee may originate measures adjusting the debt limit at any time. The Senate usually acts on legislation originated by the House. However, in 2002 and 2004, for example, the Senate originated debt limit legislation (S. 2578 and S. 2986, respectively), which became P.L. 107-199 and P.L. 108-415, respectively.
Consideration of a debt limit measure in the House usually is subject to a special rule, reported by the House Rules Committee, that may include debate limitations, restrictions on the offering of amendments, and other expediting features. In the Senate, consideration of debt limit measures is generally not subject to expedited procedures; nongermane amendments may be offered and the measures may be debated at length unless cloture is invoked or other limitations are agreed to by unanimous consent.
In 2009, for instance, an adjustment to the public debt limit (Section 1604, Div. B, P.L. 111-5) was considered under the regular legislative process as part of the economic stimulus legislation in the early part of 2009. The House passed (on January 28) its version of the economic stimulus legislation (H.R. 1, the American Recovery and Reinvestment Act of 2009) without any provision increasing the public debt limit. The Senate, however, included an increase to the public debt limit in its version passed on February 10. The House and Senate subsequently agreed to the conference report to accompany H.R. 1, which included the Senate's provision to increase the public debt limit, on February 13. President Barack Obama signed the legislation on February 17, 2009 (P.L. 111-5).
The Budget Reconciliation Process
The budget reconciliation process is an optional procedure associated with the congressional budget resolution; the budget reconciliation process may be used only if the House and Senate agree to a budget resolution that contains reconciliation directives.7 The budget reconciliation process, as provided for by the Congressional Budget Act, is intended to facilitate the timely consideration and enactment of legislation that implements, in whole or in part, the budget policies reflected in the budget resolution, including changes to the debt limit. Reconciliation legislation is subject to expedited consideration in both chambers. In the Senate, where the expedited procedures have the most impact, debate on reconciliation legislation is limited, amendments must be germane, and extraneous matter is prohibited.
Although the predominant focus of reconciliation legislation has been to change revenue and spending levels, four such measures also were used to adjust the debt limit:
1. the Omnibus Budget Reconciliation Act of 1986 (P.L. 99-509; October 21,
1986), Section 8201 (100 Stat. 1968);
•
2. the Omnibus Budget Reconciliation Act of 1990 (P.L. 101-508; November 5,
1990), Section 11901 (104 Stat. 1388-560);
•
3. the Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66; August 10, 1993),
Section 13411 (107 Stat. 565); and
•
4. the Balanced Budget Act of 1997 (P.L. 105-33; August 5, 1997), Section 5701
(111 Stat. 648).
“"Gephardt Rule
”" Procedures
The House also has
initiatedoriginated debt limit legislation pursuant to its former House Rule XXVIII,
commonly referred to as the
“"Gephardt rule
”" (named after its author, Representative Richard
Gephardt).
4 As8 The House, as noted above,
the House repealed this rule at the beginning of the
112th Congress.5
The rule provided for the automatic engrossment and transmittal to the Senate, upon the adoption
of the budget resolution, of a joint resolution changing the public debt limit by the amount
recommended in the 112th Congress (2011-2012).9
The rule provided for the automatic engrossment of a House joint resolution changing the statutory limit on the public debt when Congress had completed action on the congressional budget resolution. The joint resolution was deemed to have passed the
House by the same vote as the conference report on the budget resolution.
The Senate has
never had ahad no comparable procedure. If the Senate chose to consider a House joint
resolution originated pursuant to the Gephardt rule, it did so under the regular legislative process.
As noted above, under Under the regular legislative process
, as noted above, consideration of debt limit measures, even
those originated by the Gephardt rule, generally is not subject to expedited procedures;
nongermane amendments may be offered
, and the measures may be debated at length, unless
cloture is invoked or other limitations are agreed to by unanimous consent.
3
For more information on the budget reconciliation process, see CRS Report RL33030, The Budget Reconciliation
Process: House and Senate Procedures, by Robert Keith and Bill Heniff Jr.
4
For further information, see CRS Report RL31913, Developing Debt-Limit Legislation: The House’s “Gephardt
Rule”, by Bill Heniff Jr.
5
The “Gephardt rule” was established by P.L. 96-78 (93 Stat. 589-591; September 29, 1979) and first applied in
calendar year 1980. It originally was designated as House Rule XLIX. The House recodified the rule as House Rule
XXIII at the beginning of the 106th Congress, repealed it at the beginning of the 107th Congress, and reinstated it, as
new Rule XXVII, at the beginning of the 108th Congress. The rule was redesignated (without change) as Rule XXVIII
during the 110th Congress upon the enactment of the Honest Leadership and Open Government Act of 2007 (S. 1, P.L.
110-81, September 14, 2007, see Section 301(a)).
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Legislative Procedures for Adjusting the Public Debt Limit: A Brief Overview
cloture is invoked or other limitations are agreed to by unanimous consent.
The Senate sometimes has considered such debt limit measures for days and amended them. In
1985, for example, the Senate added extensive budget enforcement procedures (the Balanced
Budget and Emergency Deficit Control Act of 1985, also known as
the “Gramm-RudmanHollings Act”"Gramm-Rudman-Hollings") to H.J.Res. 372, a measure that the House had originated under the Gephardt rule.
More recently, in 2010, the Senate added statutory
“"pay-as-you-go
” (PAYGO) enforcement
procedures" enforcement procedures (often referred to as PAYGO) to H.J.Res. 45, a measure that the House had originated under the Gephardt rule
pursuant to the adoption of the FY2010 budget resolution (S.Con.Res. 13,
111th Congress) on
April 29, 2009111th Congress). The Senate passed the measure, as amended, on January 28, 2010, and the House
subsequently passed the measure without further amendment on February 4, 2010.
610 In such cases
that the Senate amended the rule-initiated debt limit legislation, the House was required to vote
on the Senate-amended legislation before it was sent to the President.
Overall, from the time the rule was established in 1980 to the end of the
111th Congress, the
111th Congress (2010), the House had originated 20 joint resolutions under this procedure. The Senate had passed 16 of these
joint resolutions, passing 10 without amendment and six with amendments.
711 Of the 20 joint
resolutions originated by the House under the Gephardt rule, 15 have been enacted into law.
In 14 years (calendar years 12
In 11 of the 31 years between 1980 and 2010, the rule was either suspended (1988, 1990-1991, 1994-
2002, 2004, and 2006) during this period, the
rule did not apply or was not used due to its suspension or repeal, or a budget resolution was not
finally agreed to. In most cases, the House suspended the rule because legislation changing the
statutory limit was not necessary at the time.
Disapproval Procedures Under the Budget Control
Act of 2011
The1997, and 1999-2000) or repealed (2001-2002) by the House. In most cases, the House suspended the rule because legislation changing the statutory limit was not necessary at the time. In addition, in four years, the House and Senate did not complete action on a budget resolution for that year (1998, 2004, 2006, and 2010).
Congressional Disapproval Procedures
In the past five years, legislation adjusting the debt limit twice has included congressional disapproval procedures, effectively providing Congress with a second opportunity to consider the adjustment to the debt limit. Initially enacted as part of the Budget Control Act of 2011 (P.L. 112-25), signed into law on August 2, 2011,
established
special procedures
allowed for congressional disapproval of the increases to the debt limit authorized by
the act. The act authorized increases to the debt limit by at least $2.1 trillion (and up to $2.4
trillion)
, in three installments. First, upon the certification by the President that the debt subject to
limit was within $100 billion of the debt limit, the debt limit was increased by $400 billion
immediately.
813 Second, if Congress did not enact into law a joint resolution of disapproval within
50 calendar days of receipt of the certification, the debt limit was to be increased by an additional
$500 billion. The House passed a disapproval resolution (H.J.Res. 77), but the Senate did not.
9 If
14 If Congress had enacted a joint resolution of disapproval (presumably over a presidential veto), the
debt limit would not have been increased by the additional $500 billion
, and the Office of
Management and Budget would have been required to sequester budgetary resources on a “pro
6
President Obama signed it into law on February 12, 2010 (P.L. 111-139).
Only one of these 16 joint resolutions was not signed into law. (Specifically, during the second session of the 99th
Congress, the Senate passed, as amended, the joint resolution (H.J.Res. 668) automatically engrossed by the House and
requested a conference with the House, but no further action was taken.) Of the remaining four joint resolutions, the
Senate began consideration on one but came to no resolution on it, and took no action on three.
8
President Obama submitted such certification on August 2, 2011. It is available at http://www.whitehouse.gov/thepress-office/2011/08/02/message-president-us-congress.
9
The House passed H.J.Res. 77 on September 14, 2011. See Congressional Record, daily edition, vol. 157 (September
14, 2011), pp. H6156-H6168. The Senate, however, did not take any action on this joint resolution. It had previously
rejected a motion to proceed to a Senate disapproval resolution (S.J.Res. 25) on September 8, 2011. See Congressional
Record, daily edition, vol. 157 (September 8, 2011), p. S5466.
7
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Legislative Procedures for Adjusting the Public Debt Limit: A Brief Overview
rata” Management and Budget would have been required to sequester budgetary resources on a "pro rata" basis, subject to sequestration procedures and exemptions provided in Sections 253, 255,
and 256 of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.
10
15
Third, after the debt limit had been increased by the first $900 billion and upon another
certification that the debt subject to limit was again within $100 billion of the debt limit,
11
Congress had 15 calendar days
of receipt of this second certification to enact into law a joint
resolution of disapproval to prevent the third automatic increase in the debt limit (again over a
presumed presidential veto).
16 If Congress did not enact such resolution, the debt limit was to be
increased by one of three amounts: (1)
by $1.2 trillion; (2)
by an amount between $1.2 trillion and
$1.5 trillion
, if Congress passed and the President signed into law legislation introduced by the
Joint Select Committee on Deficit Reduction;
1217 or (3)
by $1.5 trillion, if a
Constitutional
constitutional amendment requiring a balanced budget was submitted to the states for ratification. The House
again adopted another disapproval resolution (H.J.Res. 98), but the Senate subsequently rejected a
motion to proceed to the resolution. Therefore, the debt limit was increased by $1.2 trillion
because the, because other criteria that would have allowed for a larger amount were not met.
In summary, while an initial increase in the debt limit of $400 billion was effective immediately
and not subject to congressional disapproval, subsequent additional increases of $500 billion and
an amount between $1.2 trillion
and $1.5 trillion were subject to congressional disapproval. That
is, for either of the two subsequent additional increases in the debt limit, if Congress had enacted
a joint resolution of disapproval, the debt limit would not have been increased
by such amounts.
.
Expedited procedures that limited debate and prevented amendments were established for the
joint resolution of disapproval to ensure timely consideration. Although only a majority of each
chamber would have been necessary to agree to a resolution of disapproval, to prevent an
increase, supermajority support would have been necessary. This is because if the Treasury had
advised the President that further borrowing was required to meet existing commitments, the
President might normally be expected to veto the congressional resolution of disapproval.
Congress can override a presidential veto, but to do so would require the support of two-thirds of
each chamber.
Measures Adjusting the Public Debt Limit
A total of 92 debt limit measures were enacted into law during the period from 1940 to the
present (see Figure 1). The number of laws rose steadily from the decade of the 1950s through
the decade of the 1980s, from 6 to 24, but dropped to 13 in the 1990s. Six of the 13 laws enacted
in the 1990s were temporary extensions over a three-month period in 1990, enacted largely to
accommodate lengthy negotiations during a budget summit between Congress and the President.
Nine debt limit laws were enacted in the 2000s, and two debt limit laws have been enacted so far
in this decade.
10
Sequestration is a process of automatic largely across-the-board spending cuts to non-exempt programs. Under the
specified procedures, the cuts would be equally split between defense and non-defense nonexempt programs. For
background information on the sequestration process, see CRS Report R41901, Statutory Budget Controls in Effect
Between 1985 and 2002, by Megan Suzanne Lynch.
11
President Obama submitted such certification on January 12, 2012. It is available at http://www.whitehouse.gov/thepress-office/2012/01/12/letter-president-speaker-house-representatives-and-president-senate-rega.
12
The debt limit increase would be equal to the amount by which the legislation reduces the deficit, if such amount
exceeds $1.2 trillion, up to $1.5 trillion.
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Legislative Procedures for Adjusting the Public Debt Limit: A Brief Overview
Figure 1. Number of Measures Adjusting the Public Debt Limit Enacted by Decade:
1940s to the Present
Number of Measures Enacted
30
24
25
20
18
15
10
13
7
13
7
6
5
2
0
1940s
1950s
1960s
1970s
1980s
1990s
2000s
2010s
Decades
Source: each chamber.
In 2013, similar congressional disapproval procedures were included in legislation suspending the debt limit through February 7, 2014 (H.R. 2775, 113th Congress). In this instance, Congress had 22 calendar days to enact, presumably over the President's veto, legislation disapproving the suspension and subsequent adjustment to the debt limit authorized by the Default Prevention Act of 2013 (Section 1002 of P.L. 113-46, Continuing Appropriations Act, 2014, enacted on October 17, 2013). On October 30, pursuant to the act and H.Res. 391, the House passed a joint resolution disapproving the suspension of the debt limit by a vote of 222-191.18 On October 29, 2013, however, the Senate rejected a motion to proceed to its own disapproval resolution (S.J.Res. 26) by a vote of 45-54, effectively precluding any further congressional action.19
Measures Adjusting the Public Debt Limit
A total of 95 debt limit measures have been enacted into law since 1940 (see Figure 1). The number of laws rose steadily from the 1950s through the 1980s, from six to 24, but dropped to 13 in the 1990s. Six of the 13 laws enacted in the 1990s were temporary extensions over a three-month period in 1990, enacted largely to accommodate lengthy negotiations during a budget summit between Congress and the President. Nine debt limit laws were enacted in the 2000s, and five debt limit laws have been enacted so far in this decade.
Figure 1. Number of Measures Adjusting the Public Debt Limit Enacted by Decade: 1940s to the Present
Source: Office of Management and Budget, Budget of the United States Government, Fiscal Year
2012, Historical
Tables, Table 7.3, pp. 142-144; and the Legislative Information System (LIS).
2016, Historical Tables, Table 7.3.
As mentioned previously, debt limit legislation has been developed and considered under regular
legislative procedures in both chambers, pursuant to the House
’'s so-called Gephardt rule, or as
part of the budget reconciliation process. Of the total
9295 debt limit measures enacted into law
during the period from 1940 to the present, 73 since 1940, 76 were considered under regular legislative
procedures, 15 were initiated pursuant to the Gephardt rule, and four were considered as part of
omnibus budget reconciliation legislation. Compared with regular legislative procedures, the
Gephardt rule accelerates action in the House (but not the Senate)
, and the budget reconciliation
process expedites consideration in both chambers.
Table 1 provides information on the
1720 measures adjusting the public debt limit enacted
during
the period from 1993 to the presentsince 1993. Of these
1720 measures,
1114 were considered under regular
legislative procedures in both chambers
, either as stand-alone legislation (
fourfive measures) or as
part of legislation involving other matters (
sevennine measures), four were initiated pursuant to the
Gephardt rule, and two were considered as part of omnibus budget reconciliation legislation.
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Legislative Procedures for Adjusting the Public Debt Limit: A Brief Overview
Table 1. Legislation Adjusting the Public Debt Limit Enacted
from 1993 to the Present
Bill Number
Nature of
Adjustment
Public Law
(Date Enacted)
Procedure
Title of Act
H.R. 1430
Regular legislative
procedures
To provide for a
temporary increase in the
public debt limit
Temporary increase
P.L. 103-12
(04-06-1993)
H.R. 2264
Reconciliation
process
Omnibus Budget
Reconciliation Act of 1993
Permanent increase
P.L. 103-66
(08-10-1993)
H.R. 2924
Regular legislative
procedures
To guarantee the timely
payment of social security
benefits in March 1996
Temporary exemption
for certain borrowing
P.L. 104-103
(02-08-1996)
H.R. 3021
Regular legislative
procedures
To guarantee the
continuing full investment
of Social Security and
other Federal funds in
obligations of the United
States
Temporary exemption
for certain borrowing
P.L. 104-115
(03-12-1996)
H.R. 3136
Regular legislative
procedures
Contract with America
Advancement Act of 1996
Permanent increase
P.L. 104-121
(03-29-1996)
H.R. 2015
Reconciliation
process
Balanced Budget Act of
1997
Permanent increase
P.L. 105-33
(08-05-1997)
S. 2578
Regular legislative
procedures
A bill to amend title 31 of
the In two instances, the debt limit legislation also included procedures to provide for a congressional disapproval process.
Table 1. Legislation Adjusting the Public Debt Limit Enacted Since 1993
|
Bill Number
|
Procedure
|
Title of Act
|
Nature of Adjustment
|
Public Law (Date Enacted)
|
H.R. 1430
|
Regular legislative procedures
|
To provide for a temporary increase in the public debt limit
|
Temporary increase
|
P.L. 103-12 (04-06-1993)
H.R. 2264
|
Reconciliation process
|
Omnibus Budget Reconciliation Act of 1993
|
Permanent increase
|
P.L. 103-66 (08-10-1993)
H.R. 2924
|
Regular legislative procedures
|
To guarantee the timely payment of Social Security benefits in March 1996
|
Temporary exemption for certain borrowing
|
P.L. 104-103 (02-08-1996)
H.R. 3021
|
Regular legislative procedures
|
To guarantee the continuing full investment of Social Security and other federal funds in obligations of the United States
|
Temporary exemption for certain borrowing
|
P.L. 104-115 (03-12-1996)
H.R. 3136
|
Regular legislative procedures
|
Contract with America Advancement Act of 1996
|
Permanent increase
|
P.L. 104-121 (03-29-1996)
H.R. 2015
|
Reconciliation process
|
Balanced Budget Act of 1997
|
Permanent increase
|
P.L. 105-33 (08-05-1997)
S. 2578
|
Regular legislative procedures
|
A bill to amend title 31 of the United States Code to
increase the public debt
limit
Permanent increase
P.L. 107-199
(06-28-2002)
H.J.Res. 51
“Gephardt rule”
procedures
Increasing the statutory
limit on the public debt
Permanent increase
P.L. 108-24
(05-27-2003)
S. 2986
Regular legislative
procedures
A bill to amend title 31 of
the limit
Permanent increase
|
P.L. 107-199 (06-28-2002)
H.J.Res. 51
|
"Gephardt rule" procedures
|
Increasing the statutory limit on the public debt
|
Permanent increase
|
P.L. 108-24 (05-27-2003)
S. 2986
|
Regular legislative procedures
|
A bill to amend title 31 of the United States Code to
increase the public debt
limit
Permanent increase
P.L. 108-415
(11-19-2004)
H.J.Res. 47
“Gephardt rule”
procedures
Increasing the statutory
limit on the public debt
Permanent increase
P.L. 109-182
(03-20-2006)
H.J.Res. 43
“Gephardt rule”
procedures
Increasing the statutory
limit on the public debt
Permanent increase
P.L. 110-91
(09-29-2007)
H.R. 3221
Regular legislative
procedures
Housing and Economic
Recovery Act of 2008
Permanent increase
P.L. 110-289
(07-30-2008)
H.R. 1424
Regular legislative
procedures
Emergency Economic
Stabilization Act of 2008
Permanent increase
P.L. 110-343
(10-03-2008)
H.R. 1
Regular legislative
procedures
American Recovery and
Reinvestment Act of 2009
Permanent increase
P.L. 111-5
(02-17-2009)
H.R. 4314
Regular legislative
procedures
To permit continued
financing of Government
operations
Permanent increase
P.L. 111-123
(12-28-2009)
H.J.Res. 45
“Gephardt rule”
procedures
Increasing the statutory
limit on the public debt
Permanent increase
P.L. 111-139
(02-12-2010)
Congressional Research Service
7
Legislative Procedures for Adjusting the Public Debt Limit: A Brief Overview
Bill Number
S. 365
Procedure
Regular legislative
procedures
Title of Act
Budget Control Act of
2011
Nature of
Adjustment
Permanent increase, in
three installments,
subject to congressional
disapproval process
Public Law
(Date Enacted)
P.L. 112-25
(08-02-2011)
Sources: limit
Permanent increase
|
P.L. 108-415 (11-19-2004)
H.J.Res. 47
|
"Gephardt rule" procedures
|
Increasing the statutory limit on the public debt
|
Permanent increase
|
P.L. 109-182 (03-20-2006)
H.J.Res. 43
|
"Gephardt rule" procedures
|
Increasing the statutory limit on the public debt
|
Permanent increase
|
P.L. 110-91 (09-29-2007)
H.R. 3221
|
Regular legislative procedures
|
Housing and Economic Recovery Act of 2008
|
Permanent increase
|
P.L. 110-289 (07-30-2008)
H.R. 1424
|
Regular legislative procedures
|
Emergency Economic Stabilization Act of 2008
|
Permanent increase
|
P.L. 110-343 (10-03-2008)
H.R. 1
|
Regular legislative procedures
|
American Recovery and Reinvestment Act of 2009
|
Permanent increase
P.L. 111-5(02-17-2009)
H.R. 4314
|
Regular legislative procedures
|
To permit continued financing of government operations
|
Permanent increase
|
P.L. 111-123(12-28-2009)
H.J.Res. 45
|
"Gephardt rule" procedures
|
Increasing the statutory limit on the public debt
|
Permanent increase
|
P.L. 111-139(02-12-2010)
S. 365
|
Regular legislative procedures
|
Budget Control Act of 2011
|
Permanent increase, in three installments, subject to congressional disapproval process
|
P.L. 112-25(08-02-2011)
H.R. 325
|
Regular legislative procedures
|
No Budget, No Pay Act of 2013
|
Suspended statutory limit through May 18, 2013, with adjustment to limit at end of suspension period
|
P.L. 113-3(02-04-2013)
H.R. 2775
|
Regular legislative procedures
|
Default Prevention Act of 2013 (Section 1002 of Continuing Appropriations Act, 2014)
|
Suspended statutory limit through February 7, 2014, with adjustment to limit at end of suspension period, subject to congressional disapproval process
|
P.L. 113-46(10-17-2013)
S. 540
|
Regular legislative procedures
|
Temporary Debt Limit Extension Act
|
Suspended statutory limit through March 15, 2015, with adjustment to limit at end of suspension period
|
P.L. 113-83(02-15-2014)
Sources: Office of Management and Budget,
Budget of the United States Government, Fiscal Year 2016, Historical Tables, Table 7.3; and the Legislative Information System (LIS).
Acknowledgments
This report was originally written with [author name scrubbed], former specialist in American National Government at CRS. The current author, however, assumes responsibility for its current content.
Footnotes
| 1.
|
In a few instances, agencies such as the Tennessee Valley Authority operate within their own borrowing limits established separately in law. For a discussion of federal debt, the debt limit, and debt management practices, see the Office of Management and Budget, Budget of the United States Government, Fiscal Year 2016, Analytical Perspectives, pp. 31-46. For an additional discussion of issues related to increasing the debt limit, see CRS Report RL31967, The Debt Limit: History and Recent Increases.
|
| 2.
|
See, for example, S. 540, which suspended the debt limit through March 15, 2015 (P.L. 113-83, enacted on February 15, 2014). For further information on recent debt limit legislation, see CRS Report R43389, The Debt Limit Since 2011.
|
| 3.
|
The congressional budget process is provided for by the Congressional Budget Act of 1974, as amended (codified at 2 U.S.C. 601-688).
|
| 4.
|
The Senate adopted a rule prohibiting the consideration of a budget reconciliation bill, pursuant to the FY2016 budget resolution, that "would increase the public debt limit" (see Section 2001(b) of S.Con.Res. 11, 114th Congress).
|
| 5.
|
See the discussion under section "Other Legislation and the Origination Clause" of CRS Report RL31399, The Origination Clause of the U.S. Constitution: Interpretation and Enforcement.
|
| 6.
|
The Senate, as noted below, also has originated debt limit legislation.
|
| 7.
|
For more information on the budget reconciliation process, see CRS Report RL33030, The Budget Reconciliation Process: House and Senate Procedures.
|
| 8.
|
For further information, see CRS Report RL31913, Debt Limit Legislation: The House "Gephardt Rule."
|
| 9.
|
The "Gephardt rule" was established by P.L. 96-78 (93 Stat. 589-591; September 29, 1979) and first applied in calendar year 1980. It originally was designated as House Rule XLIX. The House recodified the rule as House Rule XXIII at the beginning of the 106th Congress (1999-2000), repealed it at the beginning of the 107th Congress (2001-2002), and reinstated it, as new Rule XXVII, at the beginning of the 108th Congress (2003-2004). The rule was redesignated (without change) as Rule XXVIII during the 110th Congress (2007-2008) upon the enactment of the Honest Leadership and Open Government Act of 2007 (S. 1, P.L. 110-81, September 14, 2007; see Section 301(a)).
|
| 10.
|
President Obama signed it into law on February 12, 2010 (P.L. 111-139).
|
| 11.
|
Of the remaining four joint resolutions originated pursuant to the Gephardt rule, the Senate began consideration on one but came to no resolution on it, and it took no action on three.
|
| 12.
|
In other words, only one of the 16 joint resolutions passed by the Senate was not signed into law. Specifically, during the second session of the 99th Congress, the Senate passed, as amended, the joint resolution (H.J.Res. 668) automatically engrossed by the House and requested a conference with the House, but no further action was taken.
|
| 13.
|
President Obama submitted such certification on August 2, 2011. It is available at http://www.whitehouse.gov/the-press-office/2011/08/02/message-president-us-congress.
|
| 14.
|
The House passed H.J.Res. 77 on September 14, 2011. See Congressional Record, daily edition, vol. 157 (September 14, 2011), pp. H6156-H6168. The Senate, however, did not take any action on this joint resolution. It had previously rejected a motion to proceed to a Senate disapproval resolution (S.J.Res. 25) on September 8, 2011. See Congressional Record, daily edition, vol. 157 (September 8, 2011), p. S5466.
|
| 15.
|
Sequestration is a process of automatic, largely across-the-board spending cuts to non-exempt programs. Under the specified procedures, the cuts would be equally split between defense and non-defense nonexempt programs.
|
| 16.
|
President Obama submitted such certification on January 12, 2012. It is available at http://www.whitehouse.gov/the-press-office/2012/01/12/letter-president-speaker-house-representatives-and-president-senate-rega.
|
| 17.
|
The debt limit increase would have been equal to the amount by which the legislation reduces the deficit, if such amount exceeded $1.2 trillion, up to $1.5 trillion.
|
| 18.
|
See Congressional Record, daily edition, vol. 159 (October 29-30, 2013), pp. H6872-H6876, H6928.
|
| 19.
|
See Congressional Record, daily edition, vol. 159 (October 29, 2013), pp. S7585-S7595.
|
Budget of the United States Government, Fiscal Year 2013, Historical
Tables, Table 7.3, pp. 142-144; and the Legislative Information System (LIS).
Author Contact Information
Bill Heniff Jr.
Analyst on Congress and the Legislative Process
wheniff@crs.loc.gov, 7-8646
Acknowledgments
This report was originally written with Robert Keith, specialist in American National Government. The
current author, however, assumes responsibility for its current content.
Congressional Research Service
8