Debt Ceiling Could Be One Month Away
Posted at 11:15 a.m. on Sept. 11, 2013
Brad Plumer highlights a new report from the Bipartisan Policy Center predicting that the US will reach the debt ceiling between October 18 and November 5, giving Congress just over one month to resolve the dispute.
“Note that this is all assuming Congress strikes a deal to keep funding the government’s discretionary programs past Sept. 30. If Congress fails to pass another continuing resolution and the government shuts down, that might scramble the dates a bit.”
“So who gets paid if we hit the ‘X Date’? It’s unclear… First, Treasury could try to buy time by merely delaying payments — agency officials deemed this the least-bad approach back in 2011… Second, the White House’s Office of Management and Budget could try to stem the rush of invoices coming out of government agencies. Technically, the OMB has latitude to tell federal agencies that they can’t spend funds allotted them until later in the year… Third…the Obama administration could try to find some extraordinary way to get around the debt ceiling.”