The debt limit is back. After a suspension of more than one year, the debt limit was reinstated on Monday, March 16 at a level near $18.1 trillion. You may remember the long, debt-limit standoff in 2013, which began in May of that year and culminated in a partial government shutdown before the limit was suspended again in late October. It was reinstated briefly in February 2014, then suspended again until now.
Barring quick action by policymakers, the 2015 period of operation at the debt limit could last longer than any of those in recent years. Last week, the Bipartisan Policy Center projected that the Treasury Department would likely have enough extraordinary measures and cash-on-hand to meet all obligations in full and on time through some point in the fourth quarter of 2015 (i.e., sometime between October 1 and December 31), if the debt limit is not increased or suspended before then. Why so long?
March 3, 2015: Debt Limit Update: X Date Most Likely in 4Q of 2015
Extraordinary Measures 101
Updated March 13, 2015: Extraordinary Measures, Simplified
January 9: Extraordinary Measures, Simplified
December 19, 2013: Late Start to Tax Filing Season Affects X Date
November 21: Thoughts on CBO’s New Debt Limit Report
November 21: Debt Limit Suspension: Frequently Asked Questions
September 25: Debt Limit Update: No Change to BPC X Date Projection
September 10: BPC’s Debt Limit Projection: Key Takeaways
January 30: When Will the Next Debt Limit X Date Be?
- What Is a Government Default on its Debt?
- Platinum Coins and IOUs: Missing the Point
- Debt Limit Analysis Update
- BPC’s Debt Limit Projection: Key Takeaways
- Will the Delay in the Tax Filing Season Affect the X Date?