Yesterday, the President signed into law the Budget Control Act of 2011, which provides for a total debt ceiling increase of between $2.1 trillion-$2.4 trillion, sets ten-year caps on discretionary spending, creates a Joint Select Committee on Deficit Reduction, and requires both houses of Congress to vote on a Balanced Budget Amendment. Below are key dates to keep in mind with regard to the legislation:
August 16, 2011: Deadline for Members of the Joint Select Committee on Deficit Reduction to be appointed.
September 16, 2011: Date by which the Joint Select Committee on Deficit Reduction must hold its first meeting.
September 22, 2011: Deadline for Congress to consider a resolution of disapproval for first tranche ($900 billion) of debt limit increase.
October 1-December 31, 2011: Timeframe in which both houses of Congress must vote on a Balanced Budget Amendment.
October 14, 2011: Deadline for House and Senate committees to submit recommendations to the Joint Select Committee on Deficit Reduction.
November 23, 2011: Deadline for the Joint Select Committee on Deficit Reduction to vote on a plan with the goal (not a requirement) of $1.5 trillion in deficit reduction.
December 2, 2011: Deadline for the Joint Select Committee to submit report and legislative language to the President and Congress.
December 23, 2011: Deadline for the House/Senate to vote on the Joint Select Committee on Deficit Reduction’s bill.
January 15, 2012: Date that the “trigger” leading to $1.2 trillion of future spending cuts goes into effect, if the Joint Select Committee on Deficit Reduction’s legislation has not been enacted.
February 2012: Approximate time when the first $900 billion of debt ceiling increase runs out.
February/March 2012: Sometime in this period—15 days after the President uses his authority under the bill to increase the debt ceiling a second time—is the deadline for Congress to consider a resolution of disapproval for the second tranche ($1.2-$1.5 trillion) of debt limit increase.
Fall/Winter 2012: The additional $2.1-$2.4 trillion of borrowing authority from this law runs out.
January 2, 2013: OMB orders sequestrations for defense and non-defense categories of spending necessary to meet spending cuts required by the “trigger.”
