The Fiscal Cliff means that Unemployment Benefits will abruptly end for 2 million in dec., and nearly one million more in the first quarter of 2013. So the important question is that is the legislative procedures for adjusting the public debt limit ? Here is the summary of a Brief Overview by Congressional Research Service.
Almost all borrowing by the federal government is conducted by the Treasury Department, within the restrictions established by a single, statutory limit on the total amount of debt that may be outstanding at any time. Most adju stments to the debt limit have been increases, but sometimes the change has been a reduction.
The annual budget resolution is required to include appropriate levels of the public debt for each fiscal year covered by the resolution. In some years, the budget resolution includes amounts of the public debt specifically subject to limit or amounts by which the public debt subject to limit is recommended to be changed. Because a budget resolution does not become law, Congress and the President must enact legislation to implement budget resolution policies. Under current legislative procedures, the House and Senate may develop and consider legislation adjusting the debt limit in one of two ways: (1) under regular legislative procedures in both chambers, either as freestanding legislation or as a part of a measure dealing with other topics; or (2) as part of the budget reconciliation process provided for under the Congressional Budget Act of 1974. The House also has initiated debt limit legislation under its former House Rule XXVIII (the so-called “Gephardt rule”); the House repealed the rule at the beginning of the 112 th Congress.
During the period from 1940 to the present, Congress and the President have enacted a total of 92 measures adjusting the public debt limit—73 under regular legislative procedures in both chambers, 15 under the Gephardt rule, and 4 under reconciliation procedures.
On August 2, 2011, President Barack Obama signed into law the most recent measure adjusting the public debt limit, as part of the Budget Control Act of 2011 (P.L. 112-25). The act established special procedures for congressional disapproval of the increases to the debt limit authorized by the act. The act authorized increases to the debt limit by at least $2.1 trillion (and up to $2.4 trillion), in three installments: (1) an initial increase of $400 billion; (2) an additional increase of $500 billion; and (3) an additional increase of an amount between $1.2 trillion and $1.5 trillion, depending on certain subsequent actions. Although the initial increase in the debt limit of $400 billion was effective immediately and not subject to congressional disapproval, the subsequent additional increases were subject to congressional disapproval. In both cases, Congress did not enact a disapproval resolution. Therefore, the debt limit was increased by the additional amounts of $500 billion and $1.2 trillion, as provided by the act.
Fiscal Cliff / Unemployment Benefits will abruptly end for 2 million in dec., and nearly one million more in the first quarter of 2013
Because over five million workers will be unable to collect federal UI benefits next year if Congress fails to act, NELP is calling upon Congress to make this issue a priority during the lame-duck session of the 112th Congress. Not only should Congress reauthorize the EUC program in its current form for the next year, it … Continue reading »
The unemployment insurance (UI) system is a partnership between the federal government and state governments that provides a temporary weekly benefit to qualified workers who lose their job and are seeking work. The amount of that benefit is based in part on a worker’s past earnings. CBO estimates that UI benefits totaled $94 billion in … Continue reading »
The federal budget crisis in Washington known as the “fiscal cliff” has an estimated 400,000 long-term jobless Californians on the edge. A 41/2 -year-old program of emergency federal jobless assistance, which provides many of the state’s unemployed up to $450 a week in benefits, is scheduled to expire Dec. 29 — unless Congress and President … Continue reading »
The labor market has added nearly 5 million jobs since the post-Great Recession low in Feb. 2010. Because of the historic job loss of the Great Recession, however, the labor market still has 3.8 million fewer jobs than it had before the recession began in Dec. 2007. Furthermore, because the potential labor force grows as … Continue reading »
Congress last lengthened the deadline to file for benefits in February, but lawmakers also restructured the program at the time. The maximum number of weeks the jobless can collect unemployment benefits was reduced to 73 weeks. And in all states save New York, the jobless are no longer eligible for a separate federal extended benefits … Continue reading »
Federally funded extended unemployment insurance (UI) benefits are set to expire at the end of this year. These benefits serve two very useful public purposes. Most obviously, they provide a lifeline to the long-term unemployed and their families during the deepest and longest economic downturn since the 1930s.1 Less understood but equally crucial, the UI … Continue reading »
Substantial changes to tax and spending policies are scheduled to take effect in January 2013, significantly reducing the federal budget deficit. According to CBO’s projections, if all of that fiscal tightening occurs, real (inflation-adjusted) gross domestic product (GDP) will drop by 0.5 percent in 2013 (as measured by the change from the fourth quarter of … Continue reading »
House Democrats are beginning their push for an extension of expanded federal unemployment benefits before more than 2.1 million workers lose them at year’s end. Ways and Means panel ranking member Sandy Levin (D-Mich.) and Rep. Lloyd Doggett (D-Texas) released a committee report on Monday arguing for quick action to extend benefits before they expire … Continue reading»
The Federal Reserve has reiterated that the US economy is only growing slowly, and that the country’s unemployment rate “remains elevated”. Yet it added that the housing market had “shown some further signs of improvement”. The comments came as the US central bank kept interest rates on hold at between zero and 0.25%, as had … Continue reading »
Fiscal policy, at both the federal and state and local levels: headwinds for unemployment reduction says Bernanke
The accommodative monetary policies I have reviewed today, both traditional and nontraditional, have provided important support to the economic recovery while helping to maintain price stability… Notwithstanding these positive signs, the economic situation is obviously far from satisfactory… Further, the rate of improvement in the labor market has been painfully slow. I have noted on …Continue reading »