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”

Democrats push to connect CR, debt ceiling

Democrats push to connect CR, debt ceiling

Democrats hold a press conference on Oct. 2, 2013. | M. Scott Mahaskey/POLITICO

‘We will act on a clean debt ceiling,’ Harry Reid says. | M.Scott Mahaskey/POLITICO

By BURGESS EVERETT | 10/3/13 2:10 PM EDT

Senate Democrats hope to raise the debt ceiling and reopen the government in one fell swoop, leaders indicated on Thursday.

Democratic demands are the same as they’ve always been: They want the GOP to agree to a debt ceiling increase and a continuing resolution to open the government that doesn’t include policy riders, particularly related to Obamacare. But now that the government is closed and the debt limit just two weeks away, leadership on Thursday sought to more explicitly connect the two critical items.

What does this mean for Americans? The government may be closed for weeks. Continue reading “Democrats push to connect CR, debt ceiling”