Congress Passes Bill Raising Debt Limit

Congress approved and sent to the White House today a bill temporarily increasing the national debt limit to $3.195 trillion.

The House approved the bill, 247 to 172, and the Senate passed it by voice vote.

Treasury Department officials said the government will run out of borrowing authority in mid-August, while Congress is on vacation, unless the ceiling is increased from its current level, $3.123 trillion.

The short-term boost of $72 billion approved by the House was estimated to be enough to carry the government through Oct. 2. Without approval of the extension, the government could not borrow more cash to pay its bills.

The government has never defaulted on its payments. If it did so, economists say interest rates would skyrocket.