Obama Seeks $1.2 Trillion Debt Limit Increase

Source: Reuters

President Barack Obama formally notified Congress on Thursday that he plans a $1.2 trillion increase in the U.S. debt limit, setting the stage for Republicans to level election-year charges that deficits are out of control.

Obama, in a letter to House of Representatives Speaker John Boehner, the top Republican in Congress, said “further borrowing is required to meet existing commitments.”

The move by the Democratic president gives Congress 15 days to vote on a resolution of disapproval under terms of budget control legislation passed last year.

Lawmakers are unlikely to muster the votes needed to block the boost in U.S. borrowing capacity, so a replay of last summer’s debt limit drama that brought the federal government to the brink of default and cost it its top-tier credit rating is not expected.

To read this article in its entirety visit Reuters.