Borrowing Power – Article I Section 8, Clause 2 of the Constitution

September 3, 2010, 5:47 am

The Borrowing Clause is one of Congress’ enumerated powers found in the Constitution of the United States, Article. I. Section. 8., clause 2:

(Clause 2 – Borrowing power)

[The Congress shall have Power] To borrow Money on the credit of the United States;

From the U.S. Senate web site:

Congress can borrow money through the issuance of bonds and other means. When it borrows money, the United States creates a binding obligation to repay the debt and cannot repudiate it.

photo credit: alancleaver_2000

You haven’t heard of the Bureau of the Public Debt before? We’re a small agency within the Department of the Treasury. Our customers are your neighbors, co-workers, and most likely you, too. You’re our customer if you’ve ever bought any type of Treasury security for yourself or, as millions have done in the case of savings bonds, as a gift for someone else.

Our job is to borrow the money needed to operate the federal government and to account for the resulting debt. In a nutshell, we borrow by selling Treasury bills, notes, and bonds, as well as U.S. Savings Bonds; we pay interest to investors; and, when the time comes to pay back the loans, we redeem investors’ securities. Every time we borrow or pay back money, it affects the outstanding debt of the United States.

Bureau of the Public Debt

The Constitution of the United States: A Transcription – The National Archives
United States Constitution: Texts, Commentaries, Historical Texts and Judicial Decisions – Law Library of Congress
The Constitution of the United States of America: Analysis and Interpretation – FDsys
“Federalism and the Constitution: Limits on Congressional Power,” CRS Report RL30315
“Legislative Powers of Congress: A Brief Reference Guide,” CRS Report 97-434 (16-page PDF) (Open CRS)
Clause 2. Borrowing Power – from Findlaw
Clause 2. Borrowing Power – from Cornell’s Legal Information Institute
“Overview of the Federal Debt,” CRS Report R41815 (27-page PDF)
United States public debt – from Wikipedia
Balanced Budget Amendment – from Wikipedia
Tax Foundation
Citizens Against Government Waste
National Taxpayers Union
US Debt Clock.org
Washington Watch

A free download of our Pocket Constitution is available on Scribd.

Free Copy of our Pocket Constitution: details on our web site.

Also see our FREE pocket edition of Thomas Paine’s Common Sense.

. . . . . . . . . . . .

Tags: 97-434, Article I Section 8 Clause 2, Borrowing clause, Borrowing Power, Bureau of Public Debt, Federal Debt, public debt, R41815
Category: Budget, Budget Training, Congress, Federal Budgeting, The Federal Budget Process, U.S. Constitution | Comment

The Constitution of the United States, Article. I. Section. 8. Powers of Congress

August 26, 2009, 8:37 am

The United States Constitution

Article. I. (The Legislative Branch)
Section. 8. (Powers of Congress)

(Clause 1 – Power to tax and spend)
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

(Clause 2 – Borrowing power)
To borrow Money on the credit of the United States;

(Clause 3 – Commerce power)
To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;

(Clause 4 – Naturalization and Bankruptcies)
To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;

(Clause 5 – Money)
To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

(Clause 6 – Counterfeiting)
To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;

(Clause 7 – Post Office)
To establish Post Offices and post Roads;

(Clause 8 – Copyrights and Patents)
To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries;

(Clause 9 – Courts)
To constitute Tribunals inferior to the supreme Court;

(Clause 10 – Maritime crimes)
To define and punish Piracies and Felonies committed on the high Seas, and Offences against the Law of Nations;

(Clause 11 – War power)
To declare War, grant Letters of Marque and Reprisal, and make Rules concerning Captures on Land and Water;

(Clause 12 – Army)
To raise and support Armies, but no Appropriation of Money to that Use shall be for a longer Term than two Years;

(Clause 13 – Navy)
To provide and maintain a Navy;

(Clause 14 – Military establishment)
To make Rules for the Government and Regulation of the land and naval Forces;

(Clause 15 – The Militia)
To provide for calling forth the Militia to execute the Laws of the Union, suppress Insurrections and repel Invasions;

(Clause 16 – The Militia)
To provide for organizing, arming, and disciplining, the Militia, and for governing such Part of them as may be employed in the Service of the United States, reserving to the States respectively, the Appointment of the Officers, and the Authority of training the Militia according to the discipline prescribed by Congress;

(Clause 17 – Enclave clause)
To exercise exclusive Legislation in all Cases whatsoever, over such District (not exceeding ten Miles square) as may, by Cession of particular States, and the Acceptance of Congress, become the Seat of the Government of the United States, and to exercise like Authority over all Places purchased by the Consent of the Legislature of the State in which the Same shall be, for the Erection of Forts, Magazines, Arsenals, dock-Yards, and other needful Buildings;–And

(Clause 18 – Necessary and Proper clause)
To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.