June 1st, 2011
The Debt Ceiling and the 14th Amendment: Everybody Wins!
by Jonathan Zasloff
Some observers, including Garrett Epps, who is a legal scholar, and Bruce Bartlett, who is not, have argued that Section 4 of the 14th Amendment makes the debt ceiling invalid. That Section reads, in relevant part:
The validity of the public debt of the United States, authorized by law…shall not be questioned.
That’s it, at least for the relevant parts. The only Supreme Court case law on it concerned whether government could renege on debts it made (no), and thus whether it applies to non-Civil War debts (yes).
So what’s the argument here? Recall that if there a conflict between statutes, the standard method of resolution is the “last-in-time” rule, i.e. whichever statute was passed more recently wins. The argument is that if Congress approves appropriations after the enactment of a debt ceiling, then it is unconstitutional to refuse to spend money for those appropriations. And the Treasury can’t issue T-bills and then refuse to make good on them. Those are decent arguments, although hardly sure-fire winners. The weakest link in the chain is entitlements, in other words, Medicare and Social Security. Congress enacted those before it enacted the debt ceiling (2006 IIRC), so those might not fall under this interpretation. As I have argued previously, whatever the merits of the claim, it may be that the only body with the authority to challenge a President making the claim would be a Congressional joint resolution, which would be blocked by Senate Democrats.
http://www.samefacts.com/2011/06/politics-and-leadership/the-debt-ceiling-and-the-14th-amendment-everybody-wins/