P.M. BRIEFING : Savings Bond Sales Suspended Over Lack of Debt Limit Law
WASHINGTON — Sales of U.S. Savings Bonds were suspended indefinitely today because of failure to enact legislation raising the federal debt limit, the Treasury Department reported.
“Without new legislation to increase the debt limit, the government lacks authority to issue any new debt obligations,†a Treasury statement said.
Without the legislation, the government’s borrowing authority at midnight dropped from $2.87 trillion to $2.80 trillion.
The House has voted to raise the debt ceiling to $3.1 trillion for the current fiscal year, but Senate legislation has been blocked by a squabble over whether to cut the capital gains tax.
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