White House Seeks Debt-Limit Boost

Bush administration officials have told Congress they want to raise the limit on government borrowing as early as this month, in a fresh indication of the federal budget’s declining health.

The officials have made no formal request but have said that, without action, the current $5.95-trillion debt limit could be breached by March, congressional aides said Monday on condition of anonymity. The officials say that if the economy continues to weaken, the ceiling could be hit by mid-February.

Pushing the new debt ceiling through Congress in this year’s final hectic weeks could lessen attention given to the politically embarrassing move. The limit was last raised in August 1997--just as a string of four consecutive annual federal surpluses was beginning under President Clinton.

But quick action would be difficult, congressional aides said.

Democrats would probably use debate over the request to draw attention to what they say has been fiscal mismanagement by President Bush, including his push for this year’s tax cut. It could be especially tempting for them to delay that debate until early next year, as campaigning intensifies for the November 2002 elections.

Further delays could be caused by controversial amendments that could be attached, which traditionally happens when the borrowing extension is requested.

Asked about the discussions, Amy Call, spokeswoman for the White House Office of Management and Budget, said: “We’re continuing to confer with Congress on this issue.”

Bush aides discussed the debt limit with congressional staff members last week, even as White House budget chief Mitchell E. Daniels Jr. was acknowledging that the administration expects annual deficits for at least the next three years.

Daniels blamed the return of deficits on the recession and the costs of waging war in Afghanistan and battling terrorism at home.