U.S. Sen. Barbara Boxer has reintroduced a bill that would blunt the ability to use the nation’s debt limit as a political bargaining chip, as Republicans have in recent years.
Congressional Republicans say they won’t approve raising the debt limit – the legal limit on the government’s borrowing, now at $16.4 trillion – unless Democrats and President Obama agree to deficit-reduction measures; the Democrats say raising the debt limit is a matter of paying bills on money we’ve already spent, and the threat of defaulting will wreck the world’s confidence.
The House is expected to vote later today on House Republicans’ plan to suspend enforcement of the debt limit through mid-May, giving everyone some time to cool off, reposition themselves and negotiate after the recently avoided “fiscal cliff.”
Boxer, D-Calif., said her S.57, the USA AAA Credit Restoration Act, would establish a predictable and fair process for considering an increase in the debt limit in order to avoid a default that would have catastrophic impacts on the global financial system and the U.S. economy.
“The last time Republicans threatened to default on our nation’s debt, consumer confidence plummeted, our country lost its AAA credit rating and it cost taxpayers more than $18 billion,” Boxer said in a news release. “This bill will bring sanity to future debt limit debates by laying out a clear, orderly process for raising the debt ceiling while allowing all voices to be heard.”
The bill she reintroduced Tuesday would set clear timetables for the Administration to request a debt limit increase and for Congress to consider it. On the day the President submits his budget to Congress each year, the Treasury Secretary would have to submit to Congress and print in the Federal Register the amount by which the debt limit must be increased for the following year. The Administration’s request would become law automatically unless Congress voted to disapprove of the debt limit increase under an expedited procedure.
Boxer said the measure is modeled on provisions in the Budget Control Act proposed by Senate Minority Leader Mitch McConnell, R-Ky., during 2011’s debt limit debate.
The debt limit has been raised about 100 times since 1940, more often under Republican presidents than under Democrats. President Ronald Reagan holds the record, at 18 debt-limit increases; no other president has exceeded 10, and Obama is now seeking his seventh.