The Obama administration will reportedly ask Congress later this week to raise the nation’s debt ceiling by $1.2 trillion according to a Treasury Department official.
The request is the third of three authorized by the debt ceiling agreement reached last August. The request is expected to come on December 30, the day the debt is projected to fall within $100 billion of the current $15.194 trillion ceiling. The United States also has $82 billion in interest payments due on December 30, 2011. The new request asks that the ceiling be raised to $16.39 trillion. The ceiling was raised by $400 billion when the agreement was signed and by another $900 billion last September.
According to the terms of the agreement, Congress has 15 days to pass a joint resolution disapproving of an increase, which President Obama is authorized to veto. Congress does not resume their legislative session until January 17, 2012, well beyond the 15 day limit for a Congressional disapproval vote, and a Democrat controlled Senate is almost certain to refuse to oppose the raise in the level of debt.
The new debt ceiling is expected to satisfy U.S. debts until the end of next year, according to the Treasury Department official.
December 27, 2011