 A controversy arose in July 2011 over the raising of the federal debt limit , which was needed to prevent a default by the United States government . Republicans in Congress demanded spending cuts in the budgets for 2012 and subsequent years in return for raising the debt limit . On July 19 , 2011 , the Republican @-@ led House passed a bill , the Cut , Cap and Balance Act , by a margin of 234 – 190 which would require $ 111 billion in cuts in 2012 spending levels , exempting defense , Medicare , and Social Security from these cuts , and would limit subsequent federal spending to about 20 % of the gross national product as compared to the current 24 % . It did not immediately increase the debt limit , but would have required Congress to pass a Balanced Budget Amendment to the United States Constitution before increasing the debt limit . The bill was tabled by a vote of 51 – 46 in the Senate on July 22 , and thus defeated . An alternate plan proposed by the bipartisan Gang of Six senators and favored by the Obama administration would contain about $ 3 @.@ 7 trillion in deficit reduction over the next decade , including both new revenue and large spending cuts , including in entitlement healthcare and defense , failed to gain traction . 
