In it, but not of it. TPM DC
For Congress, the most pressing matters of business are whether or how to avoid the automatic expiration of all the Bush tax cuts and the across the board spending cuts at the beginning of the year. The August 2011 deal that raised the debt limit did so just enough to get through the 2012 election. So shortly after the new Congress is sworn in, though, it will have to raise the debt limit, or once again risk defaulting on the country's financial obligations to creditors and triggering a massive economic crisis.
Before the election, House Speaker John Boehner insisted he'd renew the debt limit brinksmanship by reiterating that Republicans would oppose any debt limit increase without concomitant cuts to federal spending programs. It remains to be seen whether that threat still stands.