Obama seeks to retain 'extraordinary measures' power to handle debt limit

“Any deal is going to include it,” the aide said of preserving the power to use extraordinary measures.

House Republican leaders unveiled a new proposal Tuesday that would bar the Treasury Department from using what they call accounting gimmicks. They argue the reform would increase the transparency of the federal budget process.

To bolster their argument, Republicans cite economist Donald Marron’s view that the administration has become “embarrassingly casual” in its use of such measures.

A Senate Democratic aide countered that presidents have been able to use extraordinary measures going back to the Kennedy administration.

The emerging Senate deal would not place restrictions on extraordinary measures.

The Treasury Department has used emergency measures since May to give the government flexibility to continue borrowing and paying its obligations. Administration officials say those measures will no longer be sufficient after Thursday.

Treasury announced in May that it had suspended the sale of state and local government securities until further notice to manage the debt ceiling.