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Debt Ceiling: Analysis of Actions During the 1995-1996 Crisis

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Report Type Reports and Testimonies
Report Date Aug. 30, 1996
Report No. AIMD-96-130
Subject
Summary:

Congress has traditionally limited the size of the federal debt by establishing ceilings on the amount of Treasury securities than can be outstanding. During the past 50 years, Congress has enacted about 60 temporary and permanent increases in the debt ceiling. On August 10, 1993, Congress raised the debt ceiling to $4.9 trillion. This limit was reached in the fall of 1995, but was not raised until the following March, when it was set at $5.5 trillion. The intervening period, when the Secretary of the Treasury announced a debt issuance suspension period, became known as the 1995-1996 debt ceiling crisis. Treasury took several measures during the period to raise funds to meet federal obligations without exceeding the debt ceiling. This report (1) discusses the chronology of these actions and (2) provides a financial and legal analysis of them.

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