National News

Feb 6, 2013 10:44 AM by Associated Press

Debt ceiling patch allows Treasury to resume borrowing

WASHINGTON (AP) - The Treasury Department says it has resumed borrowing now that Congress has approved a temporary measure that allows the government to take on billions of dollars in debt to fund its most basic operations.

Treasury says that $31 billion of the $41.3 billion that it borrowed since the suspension kicked in on Monday went to restoring two government employee pension funds. Treasury had moved money over from those funds to avoid breaching the $16.4 trillion borrowing limit.

President Barack Obama signed legislation Monday that would temporarily suspend the $16.4 trillion limit on federal borrowing until May 19. Experts say that will allow the government to borrow about $450 billion to meet interest payments and obligations like Social Security benefits and government salaries.

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