With Congress also debating an omnibus appropriations package and contentious immigration issues, even a swing of days on the “X Date” timing could make a big difference.
This new estimate reflects the effects of tax reform, which will cause the federal government to run out of money sooner than previously estimated.
The next fight over the debt limit could take place earlier than anticipated.
If the debt limit isn’t included in a broader legislative package, it isn’t clear how it would be addressed in advance of the March final deadline, and how the Trump administration would handle negotiations with Congress, said Shai Akabas.
Policymakers have always extended limit just in time — but the script is now flipped.
Absent legislative action, BPC projects that the debt limit “X Date” – when the Treasury Department can no longer meet the federal government’s financial obligations in full and on time – will arrive sometime in March 2018.
Absent action by Congress to extend the debt limit, BPC previously estimated that the “X Date” could arrive sometime in March.
The Treasury Department’s latest statement on the debt limit is in line with the Bipartisan Policy Center’s analysis.