Treasury could breach debt ceiling in first half of September, much sooner than previously thought

Source: Washington Post

Economy

Treasury could breach debt ceiling in first half of September, much sooner than previously thought

By Damian Paletta and Erica Werner, Congressional reporter focusing on economic policy
July 8 at 3:47 PM

The U.S. government could run out of money to pay all of its bills by early September if Congress doesn’t rush to raise the debt ceiling, a think tank said Monday, a time frame that could force Congress to act much sooner than planned.

The Bipartisan Policy Center said that the Treasury Department could breach the borrowing limit in two months because the government has brought in far less tax revenue this year than was projected. BPC uses economic models to forecast the government’s abilities to pay its bills, and its estimates are often studied by the White House and congressional leaders.

In May, it had projected that Treasury would have until October or November before it ran into debt ceiling problems.
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Congressional negotiations to raise the debt ceiling bogged down in recent weeks, with some congressional leaders hoping to package a debt-limit increase with a broader budget package. But those talks have faltered amid disagreements with the White House, and it is unclear when they plan to hold a vote.
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Damian Paletta is White House economic policy reporter for The Washington Post. Before joining The Post, he covered the White House for the Wall Street Journal. Follow https://twitter.com/damianpaletta

Erica Werner has worked at The Washington Post since 2017, covering Congress with a focus on economic policy. Previously, she worked at the Associated Press for more than 17 years. Follow https://twitter.com/ericawerner

Read more: https://www.washingtonpost.com/business/2019/07/08/treasury-could-breach-debt-ceiling-first-half-september-much-sooner-than-previously-thought/

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David Fahrenthold Retweeted

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Treasury could breach debt ceiling in first half of September, much sooner than previously thought. The rushed timeline is because tax revenue is coming in much weaker than expected.

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