President Barack Obama will delay asking Congress for $1.2 trillion to raise the US government's debt ceiling to allow vacationing lawmakers time to weigh the request, officials said Friday. But the White House stressed that the decision was purely a procedural manoeuvre that should not spook markets and added that the Treasury would take measures to ensure the US government did not default on its debt.
The Treasury said earlier this week that the government was due to hit its debt limit of $15.2 trillion in the first week of January. Once the president requests a debt limit increase, Congress has 15 days to oppose it. But since lawmakers are currently on their Christmas and New Year recess, leaders of both chambers had asked for a delay of the request, White House deputy spokesman Josh Earnest said in Hawaii, where Obama is also on vacation.
"We have been asked by the bicameral leadership of Congress to delay certification in order to give both houses time to consider when votes may occur given the current congressional schedule," Earnest said. "The administration is in discussions with leaders in both houses to determine the best timing for submission of the certification and any subsequent votes in the two houses." Congress agreed on July 31 to immediately increase the national debt by $400 billion, and then raise it in subsequent stages when necessary.