Obama signs debt ceiling suspension, ‘No Budget, No Pay’ into law

Carolyn Kaster/AP

President Obama has signed Congress’ temporary debt ceiling suspension into law, including the “No Budget, No Pay” provision.

The law will lift the current debt limit of $16.4 trillion through May 18, allowing the federal government to continue borrowing to pay its bills until then. It also prohibits lawmakers from getting paid should they fail to pass a fiscal 2014 budget. The funds would be held in an escrow account until the budget was passed. If an agreement is not reached, the salaries would resume at the start of the 114th Congress in January 2015.

The legality of No Budget, No Pay has been questioned, as the 27th Amendment to the U.S. Constitution prohibits a sitting Congress from altering its own pay. It can only change future legislative sessions’ salaries. But supporters of the provision say it does not change the rate of pay, just temporarily withholds it. Rank-and-file lawmakers currently make $174,000 annually.

Congress will likely have more flexibility than the May 18 deadline, as Treasury can take “extraordinary measures” that will give it until August before it defaults. One of the measures the government has often used is halting the daily reinvestment of the government securities (G) fund, the most stable offering in the Thrift Savings Plan. Treasury must refill all lost funds once a debt ceiling agreement is reached.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Sponsored by G Suite

    Cross-Agency Teamwork, Anytime and Anywhere

    Dan McCrae, director of IT service delivery division, National Oceanic and Atmospheric Administration (NOAA)

    Download
  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

    Download
  • Federal IT Applications: Assessing Government's Core Drivers

    In order to better understand the current state of external and internal-facing agency workplace applications, Government Business Council (GBC) and Riverbed undertook an in-depth research study of federal employees. Overall, survey findings indicate that federal IT applications still face a gamut of challenges with regard to quality, reliability, and performance management.

    Download
  • PIV- I And Multifactor Authentication: The Best Defense for Federal Government Contractors

    This white paper explores NIST SP 800-171 and why compliance is critical to federal government contractors, especially those that work with the Department of Defense, as well as how leveraging PIV-I credentialing with multifactor authentication can be used as a defense against cyberattacks

    Download
  • Toward A More Innovative Government

    This research study aims to understand how state and local leaders regard their agency’s innovation efforts and what they are doing to overcome the challenges they face in successfully implementing these efforts.

    Download
  • From Volume to Value: UK’s NHS Digital Provides U.S. Healthcare Agencies A Roadmap For Value-Based Payment Models

    The U.S. healthcare industry is rapidly moving away from traditional fee-for-service models and towards value-based purchasing that reimburses physicians for quality of care in place of frequency of care.

    Download
  • GBC Flash Poll: Is Your Agency Safe?

    Federal leaders weigh in on the state of information security

    Download

When you download a report, your information may be shared with the underwriters of that document.