The United States bumped up against its borrowing limit Sunday, forcing the Treasury Department to employ “extraordinary measures” to make sure the government keeps paying its bills.
After a brief hiatus, the nation’s debt limit has returned as a major hurdle for Washington to overcome, and one that will play a central role in fiscal fights heading into the fall.
Congress agreed to suspend the nation’s $16.4 trillion borrowing limit the last time they approached it, at the beginning of the year. But that suspension expired May 19, and the limit was automatically boosted to cover the borrowing the Treasury incurred during that break that was subject to the limit.
The latest numbers from the Treasury Department indicate that limit will automatically jump about $300 billion to roughly $16.7 trillion.
With the government once again operating under a borrowing cap, the Treasury is back to employing special measures to free up space under the limit.