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
Pr
epared for Members and Committees of Congress

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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rule”); the House repealed the rule at the beginning of the 112th Congress.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

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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, United States Code. Periodic adjustments
in the debt limit take 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 Omnibus Budget Reconciliation Act of 1986 (P.L. 99-509; October 21,
1986), Section 8201 (100 Stat. 1968);
• the Omnibus Budget Reconciliation Act of 1990 (P.L. 101-508; November 5,
1990), Section 11901 (104 Stat. 1388-560);
• the Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66; August 10, 1993),
Section 13411 (107 Stat. 565); and
• 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 initiated 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 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 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 had 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 the regular legislative process, 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

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-Rudman-
Hollings Act”) 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 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, 2009. The Senate passed the measure, as amended, on January 28, 2010, and the House
subsequently passed the measure without further amendment on February 4, 2010.6 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
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.7 Of the 20 joint
resolutions originated by the House under the Gephardt rule, 15 have been enacted into law.
In 14 years (calendar years 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
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. 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.8 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
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).
7 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/the-
press-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.
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Legislative Procedures for Adjusting the Public Debt Limit: A Brief Overview

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
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). 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;12 or (3) by $1.5 trillion, if a 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 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/the-
press-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
30
24
25
cted
a
En 20
18
15
13
13
easures
M
10
r of
7
7
e
6
b
5
2
Num
0
1940s
1950s
1960s
1970s
1980s
1990s
2000s
2010s
Decades

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).
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 92 debt limit measures enacted into law
during the period from 1940 to the present, 73 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 17 measures adjusting the public debt limit enacted during
the period from 1993 to the present. Of these 17 measures, 11 were considered under regular
legislative procedures in both chambers, either as stand-alone legislation (four measures) or as
part of legislation involving other matters (seven 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
Nature of
Public Law
Bill Number
Procedure
Title of Act
Adjustment
(Date Enacted)
H.R. 1430
Regular legislative
To provide for a
Temporary increase
P.L. 103-12
procedures
temporary increase in the
(04-06-1993)
public debt limit
H.R. 2264
Reconciliation
Omnibus Budget
Permanent increase
P.L. 103-66
process
Reconciliation Act of 1993
(08-10-1993)
H.R. 2924
Regular legislative
To guarantee the timely
Temporary exemption
P.L. 104-103
procedures
payment of social security
for certain borrowing
(02-08-1996)
benefits in March 1996
H.R. 3021
Regular legislative
To guarantee the
Temporary exemption
P.L. 104-115
procedures
continuing ful investment
for certain borrowing
(03-12-1996)
of Social Security and
other Federal funds in
obligations of the United
States
H.R. 3136
Regular legislative
Contract with America
Permanent increase
P.L. 104-121
procedures
Advancement Act of 1996
(03-29-1996)
H.R. 2015
Reconciliation
Balanced Budget Act of
Permanent increase
P.L. 105-33
process
1997
(08-05-1997)
S. 2578
Regular legislative
A bill to amend title 31 of
Permanent increase
P.L. 107-199
procedures
the United States Code to
(06-28-2002)
increase the public debt
limit
H.J.Res. 51
“Gephardt rule”
Increasing the statutory
Permanent increase
P.L. 108-24
procedures
limit on the public debt
(05-27-2003)
S. 2986
Regular legislative
A bill to amend title 31 of
Permanent increase
P.L. 108-415
procedures
the United States Code to
(11-19-2004)
increase the public debt
limit
H.J.Res. 47
“Gephardt rule”
Increasing the statutory
Permanent increase
P.L. 109-182
procedures
limit on the public debt
(03-20-2006)
H.J.Res. 43
“Gephardt rule”
Increasing the statutory
Permanent increase
P.L. 110-91
procedures
limit on the public debt
(09-29-2007)
H.R. 3221
Regular legislative
Housing and Economic
Permanent increase
P.L. 110-289
procedures
Recovery Act of 2008
(07-30-2008)
H.R. 1424
Regular legislative
Emergency Economic
Permanent increase
P.L. 110-343
procedures
Stabilization Act of 2008
(10-03-2008)
H.R. 1
Regular legislative
American Recovery and
Permanent increase
P.L. 111-5
procedures
Reinvestment Act of 2009
(02-17-2009)
H.R. 4314
Regular legislative
To permit continued
Permanent increase
P.L. 111-123
procedures
financing of Government
(12-28-2009)
operations
H.J.Res. 45
“Gephardt rule”
Increasing the statutory
Permanent increase
P.L. 111-139
procedures
limit on the public debt
(02-12-2010)
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Legislative Procedures for Adjusting the Public Debt Limit: A Brief Overview

Nature of
Public Law
Bill Number
Procedure
Title of Act
Adjustment
(Date Enacted)
S. 365
Regular legislative
Budget Control Act of
Permanent increase, in
P.L. 112-25
procedures
2011
three installments,
(08-02-2011)
subject to congressional
disapproval process
Sources: Office of Management and Budget, 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.

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