Bills
| 3.23.22

Should the National Debt Limit be Abolished? (H.R. 3693)

Do you support or oppose this bill?

What is H.R. 3693?

(Updated March 10, 2019)

This bill would repeal the debt ceiling, which is a limit on the amount of debt that the federal government can incur that’s set by Congress. The debt ceiling was last raised in February by the Bipartisan Budget Act of 2018, which raised the debt limit through March 1, 2019.


Argument in favor

The debt limit is an arbitrary number that is primarily used as a political tool to advocate for spending cuts. It should be eliminated, as it encourages Congress to govern by crisis and increases the risk of government shutdowns.

Argument opposed

The debt limit is the best restraint there is to keep federal spending from getting even more out of control and leading to a debt crisis. Votes to raise the debt limit help the public hold lawmakers accountable for the debt they put taxpayers on the hook for.

Impact

The federal government.

Cost of H.R. 3693

A CBO cost estimate is unavailable.

Additional Info

In-Depth: Rep. Brendan Boyle (D-PA) introduced this bill to eliminate the debt limit:

“The debt ceiling, and the constant crisis it creates through repeated threats of government shutdown, is unnecessary and problematic to say the least. It’s no wonder that only a handful of countries around the world currently follow this disruptive, arbitrary and restrictive fiscal practice.
When you receive your credit card statement at the end of the month, you can’t decide ‘I’ll pay this, but won’t pay that.’ Our current process of ‘governing by deadline’ and playing chicken with the debt ceiling is essentially doing just that — and risking the full faith and credit of the United States.”

John Carney wrote the following in defense of the debt limit at CNBC:

“While this system strikes many as archaic, there is good reason for it. In the first place, it maintains the system  of accountability for national debt set up by the Constitution. Lawmakers must go on record as approving an increase in the debt limit in order to enable the government to borrow to fund the spending the lawmakers have approved. They must confront, in a very public manner, the costs of the programs they have enacted.

One of the ways in which government is able to operate unaccountably — that is, outside of democratic checks and balances — is by facilitating public ignorance about its activities. The debt ceiling vote helps raise public awareness about the costs of government, keeping government accountable and increasing democratic participation.”

This legislation was introduced with no cosponsors.


Of Note: Prior to 1917, Congress had to approve each issuance of U.S. debt — a power it rarely used. During World War I, Congress allowed the Treasury Secretary to borrow amounts up to a certain limit without requiring approval to issue debt. At that point, there were limits on specific types of debt, including war savings, Treasury notes, and certificates of indebtedness. Over the course of the Great Depression and World War II those distinct debt limits were merged into a single debt limit, which is how the debt limit currently operates.


Media:

Summary by Eric Revell

(Photo Credit: iStock.com / 400tmax)