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No Debt Limit Pressure Till at Least Mid-Summer 2017: Group

Bloomberg BNA

Wednesday, September 14, 2016

Lawmakers won’t have to take action on the federal government’s debt limit again until at least the middle of the summer of 2017, the Bipartisan Policy Center said.

The debt ceiling, which is currently suspended through mid-March 2017, has taken on a higher profile since Republicans took control of Congress in 2011. Republicans have tried to use the threat of not increasing or suspending it to force the White House to make policy concessions, with varying degrees of success. Should Democrat Hillary Clinton succeed Barack Obama and Republicans continue to control Congress, the debt limit could be at the center of a first-year confrontation with Congress.

“BPC’s projections show that the use of available extraordinary measures would allow the federal government to continue meeting all of its obligations until at least mid-summer of 2017,” wrote Shai Akabas, director of fiscal policy at the BPC, in a blog posting on the think tank’s website.

“Ultimately, sometime in the months thereafter, the federal government would be unable to continue making all payments in full and on time—a date that we refer to as the ‘X Date,’” Akabas said. “This is when extraordinary measures would be completely exhausted and Treasury would have insufficient cash on hand to cover all of its bills.”

KEYWORDS: DEBT LIMIT, PRESIDENT BARACK OBAMA, SHAI AKABAS, HILLARY CLINTON, DEPARTMENT OF TREASURY, 115TH CONGRESS