U.S. could hit borrowing limit as soon as May, budget office warns
Source: Washington Post
The deadline could come as late as September depending on how much tax revenue comes in this spring, the Congressional Budget Office said.
The federal government could hit its borrowing limit as soon as May if tax revenue falls short of expectations, or as late as September if debt stays on its current course, Congress’s nonpartisan bookkeeper reported Wednesday — potentially requiring Republicans to dramatically accelerate their timeline on legislation that would prevent a catastrophic default.
Lawmakers are attempting to pass a massive package to extend expiring tax cuts and authorize new spending on immigration enforcement and national security — what President Donald Trump has taken to calling his “big, beautiful bill” — before Memorial Day. That legislation is also slated to include a $4 trillion increase to the debt limit, which caps how much the federal government can borrow to pay for spending it has already approved.
The government technically eclipsed the debt ceiling in January, but the Treasury Department has been taking what are known as “extraordinary measures” to delay certain payments to stretch out the government’s available cash.
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As things stand now, and with big inflows of funds expected about April 15 and June 15 when tax payments are due, the government’s “X date,” or the day when the extraordinary measures won’t be enough to prevent more borrowing, could come in August or September, the Congressional Budget Office reported.
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With the current administration and its Congressional quislings guiding the ship, prepare for the worst.
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