Budget Office: Next Debt Ceiling D-Day Could Come in March

Budget Office: Next Debt Ceiling D-Day Could Come in March

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The government will exhaust its emergency borrowing authority sometime between March and June 2014, if Congress does not suspend or increase the nation’s debt limit again, according to a new report.

The nonpartisan Congressional Budget Office estimated that Treasury’s wiggle room to avoid breaching the debt ceiling could run out as early as March because the government typically runs a large deficit during that month and in February due to tax refunds. Still, April brings in significant tax revenue for the government so that could buy it more time on the debt ceiling, CBO reasoned. “Given the volume of the government’s daily cash flows and the uncertainty about the magnitude of key transactions during those months, the Treasury could exhaust its extraordinary measures and authority to borrow as early as March or as late as May or June,” the report said.

Continue reading “Budget Office: Next Debt Ceiling D-Day Could Come in March”

Treasury: New Debt Ceiling Fight Could Derail Economy

by Scott Neuman

October 03, 201311:09 AM

Treasury Secretary Jacob Lew leaves the Capitol after a visit on Thursday.Treasury Secretary Jacob Lew leaves the Capitol after a visit on Thursday.

Alex Wong/Getty Images

The Treasury Department is issuing a warning of dire economic consequences that could rival the Great Recession if Congress is unable to agree on raising the debt ceiling and the nation defaults on its obligations.

Treasury’s report, “The Potential Macroeconomic Effect of Debt Ceiling Brinkmanship,” comes as Congress is still wrangling over a short-term spending bill to reverse the partial government shutdown that went into effect Tuesday.   Later this month, House Republicans and Senate Democrats will need to agree to raise the $16.7 trillion debt ceiling or face a possible default. Continue reading “Treasury: New Debt Ceiling Fight Could Derail Economy”

Treasury: Debt Limit D-Day is Oct. 17

Treasury: Debt Limit D-Day is Oct. 17

Treasury Secretary Jacob Lew informed lawmakers of the new date.
Treasury Secretary Jacob Lew informed lawmakers of the new date. Evan Vucci/AP

Uncle Sam will exhaust its emergency borrowing authority by Oct. 17 and won’t have enough money to pay all its bills if Congress does not increase the debt limit, Treasury Secretary Jacob Lew said on Wednesday.

Without an increase in the $16.7 trillion debt limit and no more emergency borrowing authority to draw from, the government could default for the first time in history. That would put federal civilian and military salaries at risk, and could result in pay delays governmentwide.

Lew said that no later than Oct. 17, Treasury will have exhausted its emergency borrowing authority or “extraordinary measures,” which it tapped in May when the government hit the debt ceiling. The emergency borrowing authority has allowed the government to stay afloat through the summer. Continue reading “Treasury: Debt Limit D-Day is Oct. 17”

Obama signs debt ceiling suspension, ‘No Budget, No Pay’ into law

Obama signs debt ceiling suspension, ‘No Budget, No Pay’ into law

Carolyn Kaster/AP

President Obama has signed Congress’ temporary debt ceiling suspension into law, including the “No Budget, No Pay” provision.

The law will lift the current debt limit of $16.4 trillion through May 18, allowing the federal government to continue borrowing to pay its bills until then. It also prohibits lawmakers from getting paid should they fail to pass a fiscal 2014 budget. The funds would be held in an escrow account until the budget was passed. If an agreement is not reached, the salaries would resume at the start of the 114th Congress in January 2015. Continue reading “Obama signs debt ceiling suspension, ‘No Budget, No Pay’ into law”

10 questions and answers on budgetary threats to federal employees

10 questions and answers on budgetary threats to federal employees

Posted by Eric Yoder on January 23, 2013 at 1:55 pm

Capitol Fall

In football, a “triple threat” refers to a player skilled at running, passing and kicking. Federal employees are facing a triple threat of their own: from the government hitting its debt ceiling, from pending “sequestration” automatic cuts in budgets, and from a potential lapse in agency spending authority. The three relate in some ways but are separate in others.

Following are 10 questions and answers on those issues:

Q. What’s at stake for federal employees if the debt limit is exceeded?

A. The government actually has hit the ceiling already. The Treasury Department, however, has been using various financial maneuvers to free up operating money, which it projects can prevent a default for only several more weeks. Continue reading “10 questions and answers on budgetary threats to federal employees”