The Republican-led U.S. House of Representatives announced it plans to vote on a bill as soon as Jan. 23 to temporarily suspend the U.S. debt limit until May 19, 2013.
After suspending the limit for three months, the nation’s borrowing authority would be automatically increased from $16.4 trillion to accommodate the money the U.S. Treasury borrowed during those three months. The Senate, where Democrats have a majority, also would have to agree on the measure.
The House suspension plan is accompanied by a caveat: Congress must pass a budget resolution for the next fiscal year by April 15. If either the Senate or the House fails to pass a budget resolution by that time, pay for the members of that chamber will be withheld in an escrow account until they approve one, or at the latest at the end of the 113th Congress.
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