[House Report 104-325]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    104-325
_______________________________________________________________________


 
               TEMPORARY INCREASE IN PUBLIC DEBT LIMIT

                                _______


November 7, 1995.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


    Mr. Archer, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 2586]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 2586) to provide for a temporary increase in the 
public debt limit, and for other purposes, having considered 
the same, report favorably thereon with an amendment and 
recommend that the bill as amended do pass.
    The amendment is as follows:
    In the matter proposed to be inserted by section 1 of the 
bill, strike ``$4,950,000,000,000'' and insert 
``$4,967,000,000,000''.

                                CONTENTS

                                                                   Page
  I. Introduction.....................................................2
        A. Purpose and Summary; Background and Need for 
            Legislation..........................................     2
        B. Legislative History...................................     2
 II. Explanation of the Bill..........................................2
III. Votes of the Committee...........................................4
 IV. Budget Effects of the Bill.......................................6
        A. Committee Estimates of Budgetary Effects..............     6
        B. Statement Regarding New Budget Authority and Tax 
            Expenditures.........................................     6
        C. Cost Estimate Prepared by the Congressional Budget 
            Office...............................................     6
  V. Other Matters To Be Discussed Under House Rules..................7
        A. Committee Oversight Findings and Recommendations......     7
        B. Summary of Findings and Recommendations of the 
            Committee on Government Reform and Oversight.........     7
        C. Inflationary Impact Statement.........................     8
 VI. Changes in Existing Law Made by the Bill, as Reported............8
VII. Dissenting Views................................................12

                            I. INTRODUCTION

      A. Purpose and Summary; Background and Need for Legislation

    The bill increases the statutory limit on the public debt 
from the current $4.9 trillion to $4.967 trillion for debt 
outstanding prior to December 13, 1995. After December 12, 
1995, the debt limit will be $4.8 trillion. The legislation is 
needed because the current $4.9 trillion limit will be reached 
in mid-November, and the Federal Government will be unable to 
issue any additional debt.
    The bill also precludes the Secretary of the Treasury and 
other Federal officials from not properly crediting trust funds 
and special accounts with securities for the purposes of 
avoiding the limitations on the public debt. Further, Treasury 
and other officials may not sell or redeem securities, 
obligations or other assets of the trust funds and special 
accounts during a period when they are unable to issue new debt 
obligations except when necessary to provide for the payment of 
benefits and administrative expenses of the cash benefit 
programs.
    In addition, the bill requires the Secretary of the 
Treasury to report to the Congress and the General Accounting 
Office (GAO) three days before making a sale or redemption of 
securities from the trust funds or special accounts during a 
period of debt limitation, and also requires the GAO to monitor 
compliance with these provisions and report its findings and 
recommendations to the Congress.
    Finally, the bill repeals certain provisions of section 
8348 of Title 5 of the U.S. Code relating to management of the 
Federal Civil Service Retirement Fund during periods of debt 
limitation.

                         B. Legislative History

    The bill was introduced on November 7, 1995, by Chairman 
Archer. The Committee on Ways and Means marked up the bill and 
ordered it favorably reported as amended on November 7, 1995. 
The Committee adopted an amendment (by voice vote) by Mr. Crane 
to increase the temporary debt limit to $4.967 trillion instead 
of the $4.950 trillion in the bill as introduced.

                      II. EXPLANATION OF THE BILL

                       Present Law and Background

    The statutory limit on the public debt currently is $4.9 
trillion. It was set at this level in P.L. 103-66, enacted into 
law on August 10, 1993. It is projected that the current debt 
limit will be reached before the end of November 1995.
    H.R. 2491 (the 1995 budget reconciliation bill), as passed 
by the House and the Senate, would increase the permanent 
public debt limit to $5.5 trillion.
    The various authorizing statutes of the major trust funds 
of the Federal Government and certain other Federal accounts 
require that any program income not needed to meet current 
expenditures be invested in interest-bearing obligations of the 
United States or in obligations guaranteed as to both principal 
and interest by the United States. As of September 30, 1995, 
$1,320 billion in Federal securities were held by Federal trust 
funds or other special accounts and comprised more than one 
quarter of all outstanding Federal debt. Almost half were held 
by the Social Security and Medicare trust funds--$483 billion 
by Social Security and $143 billion by Medicare. Most of the 
remainder were held by the Federal Civil Service and Military 
Retirement Funds--$374 billion by the Federal Civil Service 
Retirement Fund and $113 billion by the Military Retirement 
Fund. Together, the trust funds of these four programs 
accounted for 83 percent of the debt held in Federal trust 
funds and other special accounts. The vast majority of these 
securities are ``special issue'' non-marketable obligations of 
the United States. Virtually the entire amount of securities 
held by Federal trust funds and special accounts is considered 
Federal debt subject to the debt limit.
    Subsections (j), (k), and (l) of section 8348 of Title 5 of 
the U.S. Code, and subsections (g) and (h) of section 8438 
specify procedures for the management of the Federal Civil 
Service Retirement Fund during periods of debt limitation.

                           Reasons for Change

    When the current debt limit is reached, the Treasury will 
be unable to meet the Federal Government's financial 
obligations and to manage the Federal debt effectively.
    The Congress has included a permanent increase in the debt 
limit as part of H.R. 2491 (the 1995 reconciliation bill) that 
is currently in conference between the House of Representatives 
and the Senate. The 1995 reconciliation bill creates a path 
that leads to a balanced budget in 2002. The magnitude of this 
task has not permitted the Congress to complete this effort as 
of today's date. The Committee believes it is imperative to 
increase the debt limit on a temporary basis while the Congress 
deliberates on the fiscal year 1996 budget to facilitate the 
smooth functioning of the Federal Government and to prevent any 
disruption of financial markets.
    The Committee seeks to assure that, to the maximum extent 
possible under the statutory debt limitation, the Secretary of 
the Treasury and other officials shall invest and disinvest 
Federal trust funds and special accounts solely for the 
purposes of accounting for the income and disbursements of 
these programs. The Committee further intends that the 
investments of the trust funds and special accounts are made 
timely, in accordance with the normal investment practices of 
the Treasury, and are not drawn down prematurely, for the 
purpose of avoiding limitations on the public debt or to make 
room under the limit for the Secretary to issue new debt 
obligations in order to cover other expenditures of the 
Government.
    However, the Committee does not intend that any limitation 
on the public debt preclude the Secretary and other officials 
from paying benefits from the various cash benefit programs, 
e.g., Social Security, Federal Civil Service and Military 
Retirement, and Unemployment Insurance, or have the effect of 
limiting the Secretary from obtaining the cash necessary to pay 
such benefits on time.

                       Explanation of Provisions

Increase in public debt (sec. 1 of the bill)

    The bill increases the statutory limit on the public debt 
to $4.967 trillion for debt outstanding prior to December 13, 
1995. After December 12, 1995, the debt limit will be $4.8 
trillion, beneath the present-law limit of $4.9 trillion.

Debt management provisions (secs. 2-3 of the bill)

    The bill precludes the Secretary of the Treasury and other 
officials from refraining to properly credit trust funds and 
special accounts with securities for the purposes of avoiding 
reaching, or otherwise being constrained from borrowing, by 
limitations on the public debt. Further, during any period in 
which the Secretary and other officials are unable to issue new 
debt obligations due to a limitation on the public debt, they 
may not sell or redeem securities, obligations, or other assets 
of these trust funds and special accounts, except when 
necessary to provide for the payment of benefits and 
administrative expenses of the various cash benefit programs.
    The bill also requires the Secretary of the Treasury to 
report to the Congress and the General Accounting Office (GAO) 
three days before he makes a sale or redemption of securities 
from these funds or accounts during a period of debt 
limitation, and requires the GAO to monitor compliance with the 
measures set forth in this bill and report its findings and 
recommendations to each House of Congress.
    The bill repeals Subsections (j), (k), and (l) of section 
8348 of Title 5 of the U.S. Code, and subsections (g) and (h) 
of section 8438.

                             Effective Date

    The bill is effective on the date of enactment.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 2(l)(2)(B) of rule XI of the 
Rules of the House of Representatives, the following statement 
is made concerning the votes of the Committee in its 
consideration of the bill.

Motion to report the bill

    The bill, as amended, was ordered favorably reported on 
November 7, 1995, by a roll call vote of 21 yeas and 13 nays, 
with a quorum present.
    The vote was as follows:
        Yeas                          Nays
 Mr. Archer                          Mr. Gibbons
Mr. Crane                           Mr. Rangel
Mr. Thomas                           Mr. Matsui
Mr. Shaw                            Mrs. Kennelly
Mrs. Nancy Johnson                  Mr. Coyne
Mr. Bunning                         Mr. Levin
Mr. Houghton                        Mr. Cardin
Mr. Herger                          Mr. McDermott
Mr. McCrery                         Mr. Kleczka
Mr. Hancock                         Mr. Lewis
Mr. Camp                            Mr. Payne
Mr. Ramstad                         Mr. Neal
Mr. Zimmer                          Mr. Christensen
Mr. Nussle
Mr. Sam Johnson
Ms. Dunn
Mr. Collins
Mr. Portman
Mr. Laughlin
Mr. English
Mr. Ensign

Votes on amendments

    The Committee defeated an amendment (12 yeas and 22 nays) 
by Mr. Cardin to the Crane amendment, to substitute a temporary 
increase in the debt limit to $4.967 trillion for the 
provisions of the bill as introduced. The vote was as follows:
        Yeas                          Nays
Mr. Gibbons                         Mr. Archer
Mr. Rangel                          Mr. Crane
Mr. Matsui                          Mr. Thomas
Mrs. Kennelly                       Mr. Shaw
Mr. Coyne                           Mrs. Nancy Johnson
Mr. Levin                           Mr. Bunning
Mr. Cardin                          Mr. Houghton
Mr. McDermott                       Mr. Herger
Mr. Kleczka                         Mr. McCrery
Mr. Lewis                           Mr. Hancock
Mr. Payne                           Mr. Camp
Mr. Neal                            Mr. Ramstad
                                    Mr. Zimmer
                                    Mr. Nussle
                                    Mr. Sam Johnson
                                    Ms. Dunn
                                    Mr. Collins
                                    Mr. Portman
                                    Mr. Laughlin
                                    Mr. English
                                    Mr. Ensign
                                    Mr. Christensen

    The Committee defeated an amendment (12 yeas and 22 nays) 
by Mr. Payne to substitute a temporary increase in the debt 
limit to $4.985 trillion until either the later of December 12, 
1995, or the 30th day after the date on which a budget 
reconciliation bill is presented to the President for the 
provisions of the bill as introduced. The vote was as follows:
        Yeas                          Nays
Mr. Gibbons                         Mr. Archer
Mr. Rangel                          Mr. Crane
Mr. Matsui                          Mr. Thomas
Mrs. Kennelly                       Mr. Shaw
Mr. Coyne                           Mrs. Nancy Johnson
Mr. Levin                           Mr. Bunning
Mr. Cardin                          Mr. Houghton
Mr. McDermott                       Mr. Herger
Mr. Kleczka                         Mr. McCrery
Mr. Lewis                           Mr. Hancock
Mr. Payne                           Mr. Camp
Mr. Neal                            Mr. Ramstad
                                    Mr. Zimmer
                                    Mr. Nussle
                                    Mr. Sam Johnson
                                    Ms. Dunn
                                    Mr. Collins
                                    Mr. Portman
                                    Mr. Laughlin
                                    Mr. English
                                    Mr. Ensign
                                    Mr. Christensen

                     IV. BUDGET EFFECTS OF THE BILL

              a. committee estimates of budgetary effects

    In compliance with clause 7(a) of rule XIII of the rules of 
the House of Representatives, the following statement is made 
concerning the effects on the budget of the bill as reported.
    The bill will have no effect on budget receipts or outlays.

    b. statement regarding new budget authority and tax expenditures

    In compliance with subdivision (B) of clause 2(l)(3) of 
Rule XI of the Rules of the House of Representatives, the 
Committee states that the bill involves no new budget authority 
and no new or increased tax expenditures.

      c. cost estimate prepared by the congressional budget office

    In compliance with subdivision (C) of clause 2(l)(3) of 
rule XI of the Rules of the House of Representatives, requiring 
a cost estimate by the Congressional Budget Office (CBO), the 
following statement prepared by CBO is provided.

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, November 7, 1995.
Hon. Bill Archer,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed H.R. 2586, an act providing for a temporary increase 
in the public debt limit and for other purposes, as ordered 
reported by the House Committee on Ways and Means on November 
7, 1995.
    H.R. 2586 would increase the ceiling on public debt to 
$4.967 trillion through December 12, 1995, after which the 
ceiling will be lowered to $4.8 trillion.
    Current law provides that surpluses in trust funds and 
other specified government accounts must be invested in 
Treasury securities. This legislation would add an explicit 
provision that the Treasury cannot refrain from or delay 
properly crediting cash inflows to trust funds and other 
government accounts to avoid increasing the debt limit. 
Furthermore, the Treasury would not be permitted to disinvest 
government accounts for the purpose of reducing the amount of 
outstanding debt subject to limit.
    The bill also provides that if the debt limit constrains 
the Treasury's ability to pay benefits for trust fund programs 
(such as Social Security), the Secretary may redeem trust fund 
securities and issue a corresponding amount of marketable debt 
to raise the cash to pay such benefits. The bill would limit 
the size of the redemption to the upcoming month's benefits, 
and the Secretary of the Treasury would have to report that 
action to the Comptroller General of the United States.
    By itself, this bill would not affect direct spending or 
receipts, so there would be no pay-as-you-go scoring under 
section 252 of the Balanced Budget and Emergency Deficit 
Control Act of 1985. Enactment of this legislation would not 
directly affect the budgets of state and local governments.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact on this issue is 
Jeff Holland.
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).

           V. OTHER MATTERS TO BE DISCUSSED UNDER HOUSE RULES

          a. committee oversight findings and recommendations

    With respect to subdivision (A) of clause 2(l)(3) of rule 
XI of the Rules of the House of Representatives, relating to 
oversight findings, the Committee advises that it was as a 
result of the Committee's oversight activities concerning the 
limit on the public debt and the management of the public debt 
that the Committee concluded that it is appropriate to enact 
the provisions contained in the bill. (See also Parts I.A and 
I.B of this report for a discussion of the need for the 
legislation and the legislative history.)

    b. summary of findings and recommendations of the committee on 
                    government reform and oversight

    With respect to subdivision (D) of clause 2(l)(3) of rule 
XI of the Rules of the House of Representatives, the Committee 
advises that no oversight findings or recommendations have been 
submitted to this Committee by the Committee on Government 
Reform and Oversight with respect to the provisions contained 
in the bill.

                    c. inflationary impact statement

    In compliance with clause 2(l)(4) of rule XI of the Rules 
of the House of Representatives, the Committee states that the 
provisions of the bill are not expected to have an overall 
inflationary impact on prices and costs in the operation of the 
national economy.

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

              SECTION 3101 OF TITLE 31, UNITED STATES CODE

Sec. 3101. Public debt limit

  (a) * * *
          * * * * * * *
  (b) The face amount of obligations issued under this chapter 
and the face amount of obligations whose principal and interest 
are guaranteed by the United States Government (except 
guaranteed obligations held by the Secretary of the Treasury) 
may not be more than $4,900,000,000,000 outstanding at one 
time, subject to changes periodically made in that amount as 
provided by law through the congressional budget process 
described in Rule XLIX of the Rules of the House of 
Representatives or otherwise. During the period after the date 
of the enactment of this sentence, the preceding sentence shall 
be applied by substituting for the dollar amount contained 
therein--
          (1) ``$4,967,000,000,000'' for the portion of such 
        period before December 13, 1995, and
          (2) ``$4,800,000,000,000'' after December 12, 1995.
          * * * * * * *
                              ----------                              


              SECTION 8348 OF TITLE 5, UNITED STATES CODE

Sec. 8348. Civil Service Retirement and Disability Fund

  (a) * * *
          * * * * * * *
  [(j)(1) Notwithstanding subsection (c) of this section, the 
Secretary of the Treasury may suspend additional investment of 
amounts in the Fund if such additional investment could not be 
made without causing the public debt of the United States to 
exceed the public debt limit.
  [(2) Any amounts in the Fund which, solely by reason of the 
public debt limit, are not invested shall be invested by the 
Secretary of the Treasury as soon as such investments can be 
made without exceeding the public debt limit.
  [(3) Upon expiration of the debt issuance suspension period, 
the Secretary of the Treasury shall immediately issue to the 
Fund obligations under chapter 31 of title 31 that 
(notwithstanding subsection (d) of this section) bear such 
interest rates and maturity dates as are necessary to ensure 
that, after such obligations are issued, the holdings of the 
Fund will replicate to the maximum extent practicable the 
obligations that would then be held by the Fund if the 
suspension of investment under paragraph (1) of this 
subsection, and any redemption or disinvestment under 
subsection (k) of this section for the purpose described in 
such paragraph, during such period had not occurred.
  [(4) On the first normal interest payment date after the 
expiration of any debt issuance suspension period, the 
Secretary of the Treasury shall pay to the Fund, from amounts 
in the general fund of the Treasury of the United States not 
otherwise appropriated, an amount determined by the Secretary 
to be equal to the excess of--
          [(A) the net amount of interest that would have been 
        earned by the Fund during such debt issuance suspension 
        period if--
                  [(i) amounts in the Fund that were not 
                invested during such debt issuance suspension 
                period solely by reason of the public debt 
                limit had been invested, and
                  [(ii) redemptions and disinvestments with 
                respect to the Fund which occurred during such 
                debt issuance suspension period solely by 
                reason of the public debt limit had not 
                occurred, over
          [(B) the net amount of interest actually earned by 
        the Fund during such debt issuance suspension period.
  [(5) For purposes of this subsection and subsections (k) and 
(l) of this section--
          [(A) the term ``public debt limit'' means the 
        limitation imposed by section 3101(b) of title 31; and
          [(B) the term ``debt issuance suspension period'' 
        means any period for which the Secretary of the 
        Treasury determines for purposes of this subsection 
        that the issuance of obligations of the United States 
        may not be made without exceeding the public debt 
        limit.
  [(k)(1) Subject to paragraph (2) of this subsection, the 
Secretary of the Treasury may sell or redeem securities, 
obligations, or other invested assets of the Fund before 
maturity in order to prevent the public debt of the United 
States from exceeding the public debt limit.
  [(2) The Secretary may sell or redeem securities, 
obligations, or other invested assets of the Fund under 
paragraph (1) of this subsection only during a debt issuance 
suspension period, and only to the extent necessary to obtain 
any amount of funds not exceeding the amount equal to the total 
amount of the payments authorized to be made from the Fund 
under the provisions of this subchapter or chapter 84 of this 
title or related provisions of law during such period. A sale 
or redemption may be made under this subsection even if, before 
the sale or redemption, there is a sufficient amount in the 
Fund to ensure that such payments are made in a timely manner.
  [(l)(1) The Secretary of the Treasury shall report to 
Congress on the operation and status of the Fund during each 
debt issuance suspension period for which the Secretary is 
required to take action under paragraph (3) or (4) of 
subsection (j) of this section. The report shall be submitted 
as soon as possible after the expiration of such period, but 
not later than the date that is 30 days after the first normal 
interest payment date occurring after the expiration of such 
period. The Secretary shall concurrently transmit a copy of 
such report to the Comptroller General of the United States.
  [(2) Whenever the Secretary of the Treasury determines that, 
by reason of the public debt limit, the Secretary will be 
unable to fully comply with the requirements of subsection (c) 
of this section, the Secretary shall immediately notify 
Congress of the determination. The notification shall be made 
in writing.]
          * * * * * * *

              SECTION 8438 OF TITLE 5, UNITED STATES CODE

Sec. 8438. Investment of Thrift Savings Fund

  (a) * * *
          * * * * * * *
  [(g)(1) Notwithstanding subsection (e) of this section, the 
Secretary of the Treasury may suspend the issuance of 
additional amounts of obligations of the United States, if such 
issuances could not be made without causing the public debt of 
the United States to exceed the public debt limit, as 
determined by the Secretary of the Treasury.
  [(2) Any issuances of obligations to the Government 
Securities Investment Fund which, solely by reason of the 
public debt limit are not issued, shall be issued under 
subsection (e) by the Secretary of the Treasury as soon as such 
issuances can be issued without exceeding the public debt 
limit.
  [(3) Upon expiration of the debt issuance suspension period, 
the Secretary of the Treasury shall immediately issue to the 
Government Securities Investment Fund obligations under chapter 
31 of title 31 that (notwithstanding subsection (e)(2) of this 
section) bear such interest rates and maturity dates as are 
necessary to ensure that, after such obligations are issued, 
the holdings of obligations of the United States by the 
Government Securities Investment Fund will replicate the 
obligations that would then be held by the Government 
Securities Investment Fund under the procedures set forth in 
paragraph (5), if the suspension of issuances under paragraph 
(1) of this subsection had not occurred.
  [(4) On the first business day after the expiration of any 
debt issuance suspension period, the Secretary of the Treasury 
shall pay to the Government Securities Investment Fund, from 
amounts in the general fund of the Treasury of the United 
States not otherwise appropriated, an amount equal to the 
excess of the net amount of interest that would have been 
earned by the Government Securities Investment Fund from 
obligations of the United States during such debt issuance 
suspension period if--
          [(A) amounts in the Government Securities Investment 
        Fund that were available for investment in obligations 
        of the United States and were not invested during such 
        debt issuance suspension period solely by reason of the 
        public debt limit had been invested under the procedure 
        set forth in paragraph (5), over
          [(B) the net amount of interest actually earned by 
        the Government Securities Investment Fund from 
        obligations of the United States during such debt 
        issuance suspension period.
  [(5) On each business day during the debt limit suspension 
period, the Executive Director shall notify the Secretary of 
the Treasury of the amounts, by maturity, that would have been 
invested or redeemed each day had the debt issuance suspension 
period not occurred.
  [(6) For purposes of this subsection and subsection (h) of 
this section--
          [(A) the term ``public debt limit'' means the 
        limitation imposed by section 3101(b) of title 31; and
          [(B) the term ``debt issuance suspension period'' 
        means any period for which the Secretary of the 
        Treasury determines for purposes of this subsection 
        that the issuance of obligations of the United States 
        may not be made without exceeding the public debt 
        limit.
  [(h)(1) The Secretary of the Treasury shall report to 
Congress on the operation and status of the Thrift Savings Fund 
during each debt issuance suspension period for which the 
Secretary is required to take action under paragraph (3) or (4) 
of subsection (g) of this section. The report shall be 
submitted as soon as possible after the expiration of such 
period, but not later than 30 days after the first business day 
after the expiration of such period. The Secretary shall 
concurrently transmit a copy of such report to the Executive 
Director and the Comptroller General of the United States.
  [(2) Whenever the Secretary of the Treasury determines that, 
by reason of the public debt limit, the Secretary will be 
unable to fully comply with the requirements of subsection (e) 
of this section, the Secretary shall immediately notify 
Congress and the Executive Director of the determination. The 
notification shall be made in writing.]
            VII. DISSENTING VIEWS OF THE DEMOCRATIC MEMBERS

    This bill is a travesty, a thinly-veiled attempt to 
blackmail the President of the United States to accept 
unnecessary tax cuts for the rich coupled with drastic cuts in 
social programs, like Medicare and Medicaid. This bill is not a 
good-faith effort to enable the government to pay its bills. 
This bill is partisan politics, pure and simple. We will not 
support this short-term increase in the debt ceiling because it 
is nothing more than Republican manipulation.
    House Republicans have already voted three times to 
increase the debt limit to $5.5 trillion, a cap that should 
allow the government to function until well into 1997.
    On May 18, 1995, 230 Republicans voted in favor of the 
House Report on H. Con. Res. 67, the Budget Resolution on 
Fiscal Years 1996-2002.
    On June 29, 1995, 231 Republicans voted in favor of the 
Conference Report on H. Con. Res. 67, the Budget Resolution for 
Fiscal Years 1996-2002.
    On October 26, 1995, 223 Republicans voted in favor of the 
House Report on H.R. 2491, The Seven-Year Balanced Budget 
Reconciliation Act.
    Each of those items of legislation included a long-term 
increase in the debt ceiling to $5.5 trillion. Virtually every 
House Republican has approved that increase three times 
already. In addition, all Republican Members of the Committee 
on Ways and Means and the Committee on the Budget voted a 
fourth time to increase the debt limit when those Committees 
acted on the above-mentioned items of legislation.
    A long-term increase in the debt limit is simply a matter 
of ``when,'' not ``if.'' In order to continue paying the 
nation's bills, Treasury must have the authority to borrow. The 
Republican Congressional Leadership has acknowledged this 
publicly and has agreed to increase the borrowing limit. They 
simply want to do it in a way that they think will force the 
President to accept Republican spending and taxing priorities. 
The Republicans want to combine a long-term increase in the 
debt limit with their huge, wrong-minded budget bill.
    It is entirely unnecessary to combine a long-term increase 
in Treasury's authority to borrow with the current budget 
reconciliation bill. The Republican Leadership is playing 
political games by connecting the two. The Republican budget 
bill is comprised of odious, unfair policies--like Medicare 
cuts that finance tax cuts for the wealthy. What do Medicare 
cuts that finance tax cuts for the rich have to do with paying 
our bills on time? How can the Republican Leadership call tax 
cuts for the wealthy paid for by Medicare cuts ``getting our 
fiscal house in order,'' while they would let our fiscal house 
fall down around us by making it extraordinarily more 
difficult, potentially impossible, for Treasury to pay our 
nation's bills on time.
    It is absolutely critical to enact a long-term increase in 
the debt ceiling so that Treasury can have enough cash to pay 
our nation's obligations. It is critical for all Americans 
because if the Republican leadership impedes Treasury's ability 
to pay our bills, interest rates will go up. That means the 
Republican Leadership will be responsible for increases in the 
household bills of all Americans as mortgage rates, car loan 
rates, and education loan rates go up. They will be responsible 
for an immediate decrease in the value of pension funds.
    Treasury Secretary Robert Rubin has written to the 
Republican Leadership at least six times in the last several 
weeks about this matter. Secretary Rubin has emphasized the 
importance to the country and to financial markets of dealing 
with the debt ceiling expeditiously--which, in this case would 
mean moving a separate bill, not tied to the larger, more 
difficult bill. Is the Republican Leadership's commitment to 
fiscal responsibility only a political ploy, only a buzzword to 
fool the American people? If they were truly responsible they 
would work to enact a long-term increase in the debt ceiling--
and do it now.

                                   Sam Gibbons.
                                   C.B. Rangel.
                                   Barbara B. Kennelly.
                                   William J. Coyne.
                                   Sander M. Levin.
                                   Benjamin L. Cardin.
                                   Jim McDermott.
                                   Pete Stark.
                                   Robert T. Matsui.
                                   Gerald D. Kleczka.
                                   John Lewis.
                                   Lewis F. Payne, Jr.
                                   Richard E. Neal.

                                
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