Debt Ceiling Determined to Be Reached On October 17

Last week, Treasury Secretary Jack Lew issued a letter stating that the U.S. will not be able to meet its financial obligations after October 17 unless the debt ceiling limit is raised. The letter increases pressure on Congress to pass a bill raising the statutory borrowing authority above the current $16.7 trillion limit. Congressional Democrats and President Barack Obama have vowed not to negotiate other funding and tax issues as part of any proposal to raise the debt ceiling. House Republicans, meanwhile, have been discussing a number of provisions to attach to a debt-ceiling hike, including a one-year delay of the ACA’s requirement that individuals purchase health insurance or pay a fine and cuts to Medicaid, and Medicare. Though no bill has yet been made available, details of the House plan were leaked to the press last week and provide insight about where the House leadership would like to begin the discussion about raising the debt ceiling limit.