US Government Will Run of Money By October-November if Debt Ceiling Not Raised, CBO Says

WASHINGTON (Sputnik) – The US government will most likely run out of money between October and November unless the Treasury’s debt ceiling is raised, the bipartisan Congressional Budget Office (CBO) warned on Wednesday as Republicans lawmakers opposed to President Joe Biden were reported to be opposing a hike.

“The Treasury’s cash balance and those extraordinary measures would enable it to continue financing the government’s activities for a while,” the CBO said in a report that examined the federal debt and statutory limit.  “However, if the debt limit remained unchanged, the ability to borrow using those measures would ultimately be exhausted, and the Treasury would probably run out of cash sometime in the first quarter of the next fiscal year (which begins on October 1, 2021), most likely in October or November.”

The caution came as Senate Minority Leader Mitch McConnell, who leads the Republican lawmakers opposed to Democrat President Biden, told the Punchbowl News portal that his party will not vote for a debt ceiling hike.

Democrat Senate Majority Leader Chuck Schumer, meanwhile, described McConnell’s remarks as “shameless, cynical and totally political,” adding that the much of the current debt ceiling was accrued from the Trump administration’s borrowings during the height of the coronavirus crisis.

The CBO said as of June 30, the amount of outstanding debt subject to the statutory limit was $28.5 trillion, after an addition of $6.5 trillion borrowed by the Biden administration.

Sourse: sputniknews.com