Due to a rosier deficit outlook, the Congressional Budget Office now projects that Congress has until October or November to reach an agreement to raise the debt limit.
Currently, the debt limit stands at $16.7 trillion. Starting on May 17, the Treasury Department began using “extraordinary measures” providing the it with more breathing room to borrow money necessary to continue financing federal government functions.
“If a new debt limit is not agreed upon, CBO expects those measures to run out sometime in October or November of this year,” the CBO predicted.
The 2014 fiscal year begins on October 1, meaning that the debt limit debate is on track to roughly coincide with the debate over next year’s budget.