What determines the government's borrowing power?

The government's borrowing power is primarily determined by decisions made by Congress. This is rooted in the Constitution, which grants Congress the authority to regulate the public debt and to borrow money on the credit of the United States. The process involves passing legislation that allows the Treasury to issue debt instruments, such as bonds, to finance government operations and fulfill obligations.

Congress establishes the limits on how much the government can borrow, often through the debt ceiling, which must be raised or suspended periodically to avoid defaulting on debts. This legislative oversight ensures that the borrowing aligns with the fiscal policy and budget priorities of the government. Additionally, Congress is responsible for scrutinizing and approving the budget, which directly influences how much money the government needs to borrow.

The other choices do not hold the same authority over borrowing power. The President's approval might play a role in the overall budgeting process, but ultimate control rests with Congress. A national referendum would not typically be used for borrowing decisions, as such financial matters are considered legislative rather than direct democratic actions. State legislative approval is also irrelevant because borrowing at the federal level is strictly a federal concern governed by Congress.