19 Jan 2013

Federal debt limit deadline to be extended

7:00 pm on 19 January 2013

The US House of Representatives will consider a bill next week to extend the federal debt limit by three months in order to force the Senate to pass a budget.

House Majority Leader Eric Cantor said on Friday the deadline for a budget plan is 15 April.

The announcement was made at an annual retreat gathering by Republican members of the House in Williamsburg, Virginia.

The Treasury needs Congressional authorisation to raise the current debt limit of $US16.4 trillion sometime between mid-February and early March.

Instead of passing regular budgets to reduce spending, Congress has relied largely on stopgap measures, known as continuing resolutions, to keep the federal government running.