Debt Limit 101

The Bipartisan Policy Center‘s latest debt limit forecast projects that the “X Date”—when the United States will no longer be able to meet all its obligations in full and on time—could arrive within weeks. BPC’s narrowed X Date range of early June to early August highlights not only the significant uncertainty of federal cash flows in a fragile economy but the urgency for lawmakers to act before the start of the window to avoid potentially catastrophic consequences associated with default. The projection, which incorporates data from the 2023 tax season, comes a week after Treasury Secretary Janet Yellen’s notification to Congress that the U.S. could be unable to meet all its obligations as early as June 1. Read the full release.