Bipartisan Policy Center Sees $41.1 Trillion Debt Ceiling Hit by Mid-2027
Updated
Updated · Bloomberg Government · Jun 4
Bipartisan Policy Center Sees $41.1 Trillion Debt Ceiling Hit by Mid-2027
3 articles · Updated · Bloomberg Government · Jun 4
Summary
$41.1 trillion in federal borrowing authority could be exhausted between late winter and mid-summer 2027, the Bipartisan Policy Center said, putting Treasury on course to confront the debt ceiling again next year.
Six to nine months of extraordinary measures would likely follow, delaying a default until a later “X-date” while Congress negotiates whether to raise or suspend the limit.
More than half of the $5 trillion ceiling increase enacted in last summer’s tax-and-spending law has already been used, with widening deficits driving the faster approach to the cap.
Military spending tied to the Iran war, court setbacks to Trump’s tariffs, tax-law effects and Treasury cash management could shift the deadline, with stronger revenues potentially pushing the X-date into early 2028.
BPC warned that waiting for another brinkmanship fight could lift US borrowing costs and risk another credit-rating downgrade, underscoring what it called an unsustainable fiscal path.