The United States could face a debt-ceiling crisis as early as mid-February, according to an expert report out Monday.
The Bipartisan Policy Center (BPC) estimates that the nation will begin defaulting on its payment obligations between Feb. 15 and March 1, unless Congress raises the $16.4 billion debt ceiling.
Coming on the heels of the “fiscal cliff” crisis, both sides are already gearing up for the next budget fight.
Many Republicans want to use the threat of default to force the White House to cut spending and trim entitlement benefits. President Obama has demanded Congress raise the nation’s borrowing limit without tying it to spending cuts.
The new report says that after mid-February, the Treasury Department will run out of “extraordinary measures” it can use to stave off default.
Officially, the U.S. reached the debt ceiling on New Year’s Eve. At that point, Treasury Secretary Timothy Geithner began implementing the special measures.