Finance

Finance

Obama seeks $1.2 trillion increase for U.S. debt limit

13 January 2012 09:29 (UTC +04:00)

Baku - APA-Economics. President Barack Obama formally requested that Congress approve a $1.2 trillion hike in the nationâ€™s debt limit Thursday with a letter to House Speaker John Boehner (R-CA.), Thestatecolumn reported.

The request is the result of legislation passed in August as an agreement between the White House and Congress that states that the president must notify Congress whenever the debt limit comes within $100 billion of the current $15.194 trillion limit. Congress has the right to deny Mr. Obamaâ€™s request, but the president also has the power to veto their denial.

The $100 billion threshold was reportedly reached while both the president and members of both chambers of Congress were away for the Christmas recess.

The debt ceiling has already been raised twice since the president reached the agreement with Congress in August. The U.S. debt is currently the largest debt of any country in the world.

In November, a bipartisan congressional supercommittee was formed to cut $1.2 trillion from the nationâ€™s debt over the next 10 years, but their failure to reach an agreement lead to automatic budget cuts that will be enacted starting in 2013.

The $1.2 trillion increase would bring the U.S. debt limit to $16.394 trillion. According to the U.S. Treasury Department, that would be enough to fund the government through the end of 2012.

According to a spokeswoman for House Majority Leader Eric Cantor (R-VA.), the House will take a vote on the presidentâ€™s request next week.

Republican National Committee chairman Reince Priebus slammed the president via his Twitter account after learning of the request Thursday.
Both chambers of Congress have 15 days from Thursday to take a vote on the request.