Is there a file size limit on the Image Resizing tool?

I am uploading image files to a gallery and creating a resized thumbnail (h = 150px). It works perfects on image files under 2 MB in size, but fails on files larger than this. The original file uploads without issue, the largest I’ve tried is 3.4 MB, the action fails on the “resize Image” command.

Can I increase the workable file size?