Washington Hits the $16.7 Trillion Debt Ceiling with $300 Billion in New Debt
We have to pass a balanced budget amendment.
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On May 19, the United States hit its debt ceiling after adding $300 billion in more debt since lawmakers suspended the ceiling in February.
But the cash won’t run dry until at least Labor Day, according to Treasury Secretary Jack Lew, whose department can employ a variety of cash management tools to continue spending beyond the official debt deadline.
Congress last hit the debt ceiling in January. The President and Congress then decided to “suspend” the debt limit through May 18. This is the first time that lawmakers adopted a debt ceiling date instead of a dollar amount. The Congressional Budget Office explains:
On May 19, the debt limit will be raised to its previous value—$16.394 trillion—plus the amount of borrowing that occurred while the limit was suspended (that is, from early February to May 18).