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.
May 15, 2014: Prioritization of Debt-Related Payments is Technically Possible But Risky; Extraordinary Measures Could Last Through Next Summer
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 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
Debt-ceiling doomsday comes Oct. 17. Here’s what happens next.
The Washington Post
November 21: Thoughts on CBO's New Debt Limit Report
November 21: Debt Limit Suspension: Frequently Asked Questions
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
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?