Obama to Seek Third Debt Ceiling Increase Since Summer Deal

The Obama administration will ask Congress to raise the nation's borrowing limit by $1.2 trillion this week, marking the third and final increase from a deal negotiated over summer.

Treasury officials say the increase will boost the nation's borrowing limit to $16.4 trillion. Treasury officials say the increase is necessary because the nation will be within $100 billion of the current limit by Friday.

In August, Congress and the administration agreed to raise the borrowing limit by $2.1 trillion in three steps. The parties also agreed to cut more than $2 trillion from the deficit over the next 10 years.

Congress can reject the increase, though Obama can then veto their objection. If Congress doesn't act by Jan. 14, the increase will take place automatically.