CBO: Debt Ceiling May Be Delayed Until June 2014

Congress voted last month to end the government shutdown and to extend the debt limit through Feb. 7, 2014. Then, on February 8, the U.S. Treasury Department could use “extraordinary measures”, the special accounting maneuvers that let it keep paying the country’s bills without going over the debt limit, to avoid a default.

 

By CBO’s estimate, the Treasury might be unable to fully pay its obligations starting in March, but depending on the timing and magnitude of tax refunds and receipts in February, March, and April, the Treasury might be able to continue borrowing into May or early June.