The $14.2 trillion federal debt limit has been reached, forcing the Treasury to defer payments to pension trust funds in order to cover other costs. This permits a delay until August for the political battle on raising the debt limit and cutting federal spending. Reed Construction Data's Chief Economist Jim Haughey says President Obama has several more accounting tricks available which could delay debate on the debt limit a few more months. He predicts the critical congressional vote on the debt limit and spending cuts will likely be late this year although it may be preceded by a series of small, short extensions coupled with spending cuts of about the same size. Be prepared for further reductions in public construction spending.