diff --git a/run_agent.py b/run_agent.py
index 61699607d1f..ffe0ffbe67e 100644
--- a/run_agent.py
+++ b/run_agent.py
@@ -5135,7 +5135,7 @@ class AIAgent:
         if isinstance(body, dict):
             payload = body.get("error") if isinstance(body.get("error"), dict) else body
         if isinstance(payload, dict):
-            reason = payload.get("code") or payload.get("error")
+            reason = payload.get("code") or payload.get("type") or payload.get("error")
             if isinstance(reason, str) and reason.strip():
                 context["reason"] = reason.strip()
             message = payload.get("message") or payload.get("error_description")
@@ -7583,7 +7583,15 @@ class AIAgent:
             return False, has_retried_429
 
         if effective_reason == FailoverReason.rate_limit:
-            if not has_retried_429:
+            usage_limit_reached = False
+            if error_context:
+                context_reason = str(error_context.get("reason") or "").lower()
+                context_message = str(error_context.get("message") or "").lower()
+                usage_limit_reached = (
+                    "usage_limit_reached" in context_reason
+                    or "usage limit has been reached" in context_message
+                )
+            if not has_retried_429 and not usage_limit_reached:
                 return False, True
             rotate_status = status_code if status_code is not None else 429
             next_entry = pool.mark_exhausted_and_rotate(status_code=rotate_status, error_context=error_context)
diff --git a/tests/run_agent/test_run_agent.py b/tests/run_agent/test_run_agent.py
index cd62cd41ded..8d56ff6425a 100644
--- a/tests/run_agent/test_run_agent.py
+++ b/tests/run_agent/test_run_agent.py
@@ -3746,6 +3746,37 @@ class TestCredentialPoolRecovery:
         assert retry_same is False
         agent._swap_credential.assert_called_once_with(next_entry)
 
+    def test_recover_with_pool_rotates_usage_limit_429_immediately(self, agent):
+        next_entry = SimpleNamespace(label="secondary")
+        captured = {}
+
+        class _Pool:
+            def current(self):
+                return SimpleNamespace(label="primary")
+
+            def mark_exhausted_and_rotate(self, *, status_code, error_context=None):
+                captured["status_code"] = status_code
+                captured["error_context"] = error_context
+                return next_entry
+
+        agent._credential_pool = _Pool()
+        agent._swap_credential = MagicMock()
+
+        recovered, retry_same = agent._recover_with_credential_pool(
+            status_code=429,
+            has_retried_429=False,
+            error_context={
+                "reason": "usage_limit_reached",
+                "message": "The usage limit has been reached",
+            },
+        )
+
+        assert recovered is True
+        assert retry_same is False
+        assert captured["status_code"] == 429
+        assert captured["error_context"]["reason"] == "usage_limit_reached"
+        agent._swap_credential.assert_called_once_with(next_entry)
+
 
     def test_recover_with_pool_refreshes_on_401(self, agent):
         """401 with successful refresh should swap to refreshed credential."""
@@ -3832,6 +3863,22 @@ class TestCredentialPoolRecovery:
         assert context["message"] == "Weekly credits exhausted."
         assert context["reset_at"] == "2026-04-12T10:30:00Z"
 
+    def test_extract_api_error_context_uses_type_as_reason(self, agent):
+        error = SimpleNamespace(
+            body={
+                "error": {
+                    "type": "usage_limit_reached",
+                    "message": "The usage limit has been reached",
+                }
+            },
+            response=SimpleNamespace(headers={}),
+        )
+
+        context = agent._extract_api_error_context(error)
+
+        assert context["reason"] == "usage_limit_reached"
+        assert context["message"] == "The usage limit has been reached"
+
     def test_recover_with_pool_passes_error_context_on_rotated_429(self, agent):
         next_entry = SimpleNamespace(label="secondary")
         captured = {}