Debt Limit Analysis

By Shai Akabas, Brian Collins, Steve Bell

Tuesday, September 10, 2013

KEYWORDS: DEFAULT PREVENTION ACT, GOVERNMENT SHUTDOWN

On February 8, the statutory debt limit was reinstated; prior to that, it had been suspended since October 17, according to the terms of the Default Prevention Act, which was enacted along with the agreement that ended the government shutdown.  The new debt limit is set at $17.2 trillion, a $542 billion increase from the previous limit, reflecting debt issued to cover deficit spending since May 2013.

On Tuesday, February 11, the House of Representatives passed a suspension of the debt limit through March 15, 2015, as an amendment to an unrelated Senate-passed bill (S. 540) to expedite Senate consideration.  If S. 540 becomes law, upon reinstatement next year, BPC estimates that the new debt limit will be roughly $1 trillion higher.

Latest Updates

February 12, 2014: House-Passed Suspension Would Add Approximately $1 Trillion to Debt Limit in March 2015

February 6, 2014: What to do with the Federal Debt Limit? Five Ideas

January 30, 2014: BPC Debt Limit Projection: X Date Will Arrive Soon After Debt Limit Reinstatement

January 9, 2014: Extraordinary Measures, Simplified

December 19, 2013: Late Start to Tax Filing Season Affects X Date

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In the News

Treasury Puts a Date on When Cash May Run Out: Oct. 17
The New York Times

U.S. Running Out of Cash More Quickly
The Wall Street Journal

Treasury will run out of borrowed money by Oct. 17
USA TODAY

Debt-ceiling doomsday comes Oct. 17. Here’s what happens next.
The Washington Post

Older Updates

November 21: Thoughts on CBO’s New Debt Limit Report

November 21: Debt Limit Suspension: Frequently Asked Questions

October 18: BPC Estimates Agreement Will Increase Debt Limit by Roughly $600 billion; Debt Limit Suspended Until February 8, 2014

Debt Limit: Market Reaction
As we approach BPC’s projected debt limit X Date range without a resolution, risks to markets, the economy, the federal government, and American citizens will grow. In these posts, we will attempt to report on these risks and their impacts as they occur. View all posts

October 9: Could the X Date be delayed by extending the Debt Issuance Suspension Period?

October 8: As BPC’s X Date Window Narrows, Economic Risks Grow

October 3: Will the Government Shutdown Delay the X Date?

September 25: Debt Limit Update: No Change to BPC X Date Projection

September 10: BPC’s Debt Limit Projection: Key Takeaways

August 26: Statement by the Bipartisan Policy Center’s Steve Bell on the New Debt Limit Deadline

July 16: Debt Limit Update: Still on Track for a Fall X Date

May 23: Debt Limit Reinstated at $16.7 Trillion: Updated X Date Estimate

May 9: Updated X Date Estimate: GSE Dividend Announcements

May 8H.R. 807 (the Full Faith and Credit Act) and the Debt Limit

April 26:The Debt Limit: Updated X Date Projection

January 31H.R. 325, The Debt Limit, and Extraordinary Measures: A Technical Note

January 30When Will the Next Debt Limit X Date Be?

January 24

January 16

January 11

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