- By Kellie Lunney; 3:44 PM ET
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.