House Passes Bill Suspending Debt Ceiling until May

Posted on: January 25th, 2013 by NADO Admin

On Wednesday, the U.S. House of Representatives passed H.R. 325, commonly known as the No Budget, No Pay Act.  Most importantly, the bill extends the federal debt limit through May 19, preventing any threat of a government default before that date.  Extending the debt ceiling ensures that the Treasury Department will be authorized to issue new debt so that current government obligations continue to be paid.  A default of any type would likely have had extremely negative impact on the U.S. and global economy.

The bill also contains a provision blocking the pay of House and Senate members if their respective chambers do not produce a budget resolution, as required by law.  House leaders included this provision because the Senate has failed to adopt a budget resolution for three years.  Budget resolutions, while not carrying the force of law, help both chambers set spending priorities and enable a more predictable and efficient appropriations process.  When the annual spending bills are not completed and the government relies on continuing resolutions, long-term planning for any agency or organization that receives federal funding is extremely difficult.  The Senate has indicated it will pass H.R. 325 and President Obama has indicated that he will sign the legislation. Click here (http://www NULL.gpo NULL.pdf) to view the full text of H.R. 325.

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