FILE - In this Tuesday, Jan. 1, 2013, file photo, the dome of the Capitol is reflected in a skylight of the Capitol Visitor's Center in Washington. The Senate Thursday, Jan. 31, 2013, took up must-do legislation to permit the government to borrow hundreds of billions of dollars more to meet its obligations, putting off one Washington showdown even as others loom in coming weeks. (AP Photo/Jacquelyn Martin, File)
Congress sends bill to Obama averting govt default
FILE - In this Tuesday, Jan. 1, 2013, file photo, the dome of the Capitol is reflected in a skylight of the Capitol Visitor's Center in Washington. The Senate Thursday, Jan. 31, 2013, took up must-do legislation to permit the government to borrow hundreds of billions of dollars more to meet its obligations, putting off one Washington showdown even as others loom in coming weeks. (AP Photo/Jacquelyn Martin, File)
By DAVID ESPO
AP Special Correspondent /
January 31, 2013
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Treasury Department officials said that as soon as Obama signs the debt limit legislation, Treasury will begin taking steps to reverse the measures it has been taking over the past month to avoid exceeding the current debt limit, which was reached on Dec. 31.
Treasury has the ability to create about $200 billion in headroom primarily by tapping funds from government employee pension funds. Treasury said it will restore the money that was diverted with interest once the debt legislation is signed. That will allow the same measures to be used once again if needed when the current debt authority runs out on May 18.
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AP Economics Writer Martin Crutsinger contributed to this report.
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