The White House said President Obama would veto a House bill on the floor Wednesday that would grant the Treasury Department limited borrowing authority if the federal government hits the debt ceiling, which is set to happen Nov. 3.
The Obama administration wants Congress to raise the debt limit again without restrictions, which would allow the government to borrow money in order to maintain current spending levels across the board.
The bill expected to pass the House Wednesday would only allow Treasury to put the U.S. further into the red to pay principal and interest on certain obligations. After Treasury's borrowing authority is exhausted Nov. 3, under the Default Prevention Act, the federal government would only be allowed to issue new debt to cover principal and interest on debt held by the public or the Social Security trust funds. It also would explicitly bar new debt to pay lawmaker's salaries.
In a statement of administration policy, the Office of Management and Budget said the bill authored by Rep. Tom McClintock, R-Calif., "would result in the Congress not paying obligations it has already agreed to, thereby putting the nation into default on its obligations."
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