Debt Ceiling Increases by $1.2 Trillion

Today, the Debt Ceiling was increased to $16.4 trillion because the Congress failed to pass into law a measure to prevent the increase requested by President Obama earlier this month. This is a $1.2 trillion increase. The Treasury Department estimates that this latest increase will be sufficient until the end of 2012. Read more here.

Senate fails to Block Debt Ceiling Increase 

Today, the Senate voted 52-44 to prevent a vote on blocking the debt ceiling increase. This comes after last weeks House vote where the House did vote to prevent the increase in the debt ceiling by $1.2 trillion as requested by President Obama. Because the Senate failed to block it, the debt ceiling will increase to $16.4 trillion at the close of business on January 27th. Read more here. 

House Votes to Block Debt Ceiling Increase

Today, the House of Representatives voted 239-176 to block a $1.2 trillion debt ceiling increase requested by President Obama, pursuant to the Budget Control Act. This is largely a symbolic vote because it is unlikely that the Senate would also vote to block the increase and the president can veto the measure if it does. The debt ceiling is scheduled to increase to $16.4 trillion at the close of business on January 27th. Read more here. 

Suspension of New G-Fund Securities

Today, the Treasury Department stopped issuing new securities for the retirement savings program for federal and postal workers, commonly known as the G-Fund.

Measures like this have been used in 1996, 2002, 2003, 2004, 2006 and 2011. Read more here.

President Obama Requests $1.2 trillion Increase

Today, President Obama formally requested that the debt ceiling be raised by an additional $1.2 trillion. This is the legal limit set in the Budget Control Act that the president can ask for because the Super Committee did not find more than $1.2 trillion in savings. If the Super Committee had found more than $1.2 trillion, the maximum ask would have equaled that amount, up to $1.5 trillion. If the Congress does not disapprove this increase, which it has 15 days to do, the new ceiling would be $16.4 trillion. Read more here.

Debt Ceiling Reached and Suspension of Reinvestment of Exchange Stabilization Fund 

Today, the Treasury Department has announced that it has reached the statutory debt ceiling. Additionally, in order to prevent breaching the ceiling, Treasury  suspended reinvestment of funds into the Exchange Stabilization Fund, an extraordinary measure.

Measures like this have been used in 1996, 2000, 2003, 2004, 2006 and in 2011. Read more here.