February 16, 2010
CRS: The Debt Limit: History and Recent Increases
The Debt Limit: History and Recent Increases, D. Andrew Austin, Analyst in Economic Policy, Mindy R. Levit, Analyst in Public Finance
January 28, 2010
needed to meet its obligations. This increases debt held by the public. Second, debt increases when the federal government issues debt to certain government accounts, such as the Social Security, Medicare, and Transportation trust funds, in exchange for their reported surpluses. This increases debt held by government accounts. The sum of debt held by the public and debt held by government accounts is the total federal debt. Surpluses generally reduce debt held by the public, while deficits raise it. A statutory limit has restricted total federal debt since 1917 when Congress passed the Second Liberty Bond Act. Congress has raised the debt limit eight times since 2001.:
