Government Shutdown Won’t Change Debt Ceiling D-Day

A shutdown wouldn't remove the pressure on Congress to raise the nation's debt limit

  • Share
  • Read Later
J. Scott Applewhite / Associated Press

Storm clouds hang over Capitol Hill on Sept. 27, 2013.

A potential government shutdown next week would have no material impact on the timing of the federal government reaching the debt limit, experts said Friday.

Steve Bell, the senior director of economic policy for the Bipartisan Policy Center, told TIME that a shutdown — of any length — wouldn’t alter the pressure on Congress to raise the nation’s borrowing limit.

“A shutdown would not affect the ‘X day’ by more than one day either way,” Bell said, using his office’s term for the deadline. “For the purposes of the debt limit, it’s going to be so negligible.”

Unlike the last government shutdowns, which came in December 1995 and January 1996, the current showdown comes at the start of a new fiscal year. October and November are important months for federal spending, with large mandatory expenditures. Bell said that regardless of a shutdown, he expects the Treasury’s extraordinary measures, which have allowed the government to manage its debt without raising the debt limit, will become insufficient to meet the government’s obligations between October 18 and November 5.

On Wednesday, Treasury Secretary Jack Lew set October 17 as the date at which extraordinary measures will be exhausted.

5 comments
Arimathean
Arimathean

I heard somewhere that the President could use executive power in the face of an imminent crisis to unilaterally raise the debt ceiling (should we get close enough that it's apparent we're going to hit the limit).  That sounds to me like it can't be true, but perhaps I'm wrong.  Anyone have any citations they can point me to for that?

fitty_three
fitty_three

@Arimathean 

I've heard Article 4 of the 14th Amendment.

I don't know what's in the cards, but the more I hear, the more it looks like Obama isn't going to negotiate and neither or the Dems in the Senate. I think that the Dems won't tolerate another cave in because they feel that caving in last time is what got us here. They don't think the GOP shouldn't be rewarded for this kind of behavior.

I think that even if there is no other reason than that, it's enough to ensure Obama doesn't cave.

anon76
anon76

@fitty_three

I'm still hoping that Republicans pin all their hopes on the debt ceiling fight, only to see Obama invoke article 4.  It would ensure that nothing else get's done in congress until 2016, but, uh, I guess nothing would change, really.

La_Randy
La_Randy

@anon76 @fitty_three I think that they would immediately institute impeachment proceedings. They have proven themselves very apt at doubling down on the stupid.