US Debt Ceiling Issue: History
The following is the US debt ceiling history with timeline:
| Year | Event |
|---|---|
| 1917 | The US debt ceiling is introduced with the Second Liberty Bond Act, setting an initial limit of $11.5 billion on borrowing to finance World War I expenditures. |
| 1939 | The debt ceiling is raised to $45 billion to finance defense spending ahead of World War II. |
| 1941 | With the US entry into World War II, the debt ceiling is raised to $65 billion. |
| 1945 | Post-war reconstruction leads to a further increase in the debt ceiling to $300 billion. |
| 1974 | The Congressional Budget and Impoundment Control Act establishes the modern budget process and provides procedures for raising the debt ceiling. |
| 1980s | Repeated increases in the debt ceiling are required to fund Reagan-era tax cuts and military spending, leading to significant growth in national debt. |
| 1990s | Budget negotiations between Congress and President Clinton result in the Omnibus Budget Reconciliation Act of 1993, which includes provisions to raise the debt ceiling. |
| 2001 | The debt ceiling is raised multiple times during the Bush administration to finance tax cuts, the War on Terror, and the response to the 9/11 attacks. |
| 2011 | Contentious debates over raising the debt ceiling lead to the Budget Control Act, which sets spending caps and establishes a “supercommittee” to address deficit reduction. |
| 2013 | The debt ceiling is temporarily suspended through the Bipartisan Budget Act, allowing the Treasury to continue borrowing until February 2014. |
| 2021 | Ongoing negotiations and temporary suspensions of the debt ceiling occur as the US faces fiscal challenges due to the COVID-19 pandemic and economic downturn. |
US Debt Ceiling Issue: News Updates and History
The US Debt Ceiling Issue refers to the statutory limit set by Congress on the total amount of money that the federal government is authorized to borrow to cover its expenditures. When government spending exceeds its revenue, the Treasury Department must borrow money by issuing Treasury bonds to cover the shortfall.
Table of Content
- US Debt Ceiling Issue: News Updates
- ]US Debt Ceiling: Definition
- US Debt Ceiling Issue: Factors
- US Debt Ceiling Issue: History
- US Debt Ceiling Issue: Current Situation