Report: Less debt-limit wiggle room in 2013

The Hill
Nov. 27, 2012

Washington policymakers will have less wiggle room to hammer out a debt-limit agreement than they did when they struck last August's eleventh-hour accord, according to new analysis.

The government now has fewer tools to free up cash once the $16.4 trillion borrowing cap is reached, and early 2013 is a particularly rough time for government finances, which could make the next effort to boost the ceiling particularly rough-going, according to the Bipartisan Policy Center (BPC).

A new report released Tuesday estimated that Washington is set to reach its $16.4 trillion borrowing limit by the end of December. When Washington last reached the limit, in mid-May, the Treasury Department was able to employ a series of "extraordinary measures" to free up cash, buying time to raise the limit until the beginning of August.