Trump's deal, reached with Democratic leaders last week, officially pushed the debt deadline to December 8th. But the Treasury Department has in the past extended its legal borrowing limit using loopholes it calls "extraordinary measures." The U.S. last March, for example, technically hit its debt limit, but extraordinary measures put off the true deadline for six months.
If Congress does not take action by the deadline, the U.S. would not be able to borrow in order to cover its costs, and thus default on its debt and miss other crucial government payments. Economists warn that such an eventuality would spark a global financial crisis.
If Congress does not take action by the deadline, the U.S. would not be able to borrow in order to cover its costs, and thus default on its debt and miss other crucial government payments. Economists warn that such an eventuality would spark a global financial crisis.
thehill.com/policy/finance/350087-new-debt-limit-deadline-possible-in-march-study