(The Center Square) – The U.S. government faces a significant risk of not being able to pay its bills in the coming weeks without an increase to the debt limit, the Congressional Budget Office said Friday.
The warning comes as Democrats and Republicans remain far apart on negotiations over the debit limit. The debt ceiling is the maximum amount of debt the U.S. Department of the Treasury can issue.
“The Congressional Budget Office projects that if the debt limit remains unchanged, there is a significant risk that at some point in the first two weeks of June, the government will no longer be able to pay all of its obligations,” according to an agency report released Friday.
Even May spending is uncertain.
“The extent to which the Treasury will be able to fund the government’s ongoing operations will remain uncertain throughout May, even if the Treasury ultimately runs out of funds in early June,” according to the report. “That uncertainty exists because the timing and amount of revenue collections and outlays over the intervening weeks could differ from CBO’s projections.”
Republicans have said they won’t agree to raise the debt limit without spending cuts. Biden and Democrats have said Congress must raise the debt limit before discussing changes to spending or other budget changes.
“If the debt limit is not raised or suspended before the Treasury’s cash and extraordinary measures are exhausted, the government will have to delay making payments for some activities, default on its debt obligations, or both,” according to the CBO report.
On the other hand, if the extraordinary measures are sufficient to last until June 15, “expected quarterly tax receipts and additional extraordinary measures will probably allow the government to continue financing operations through at least the end of July,” according to the report.
House Republicans recently passed a bill to reduce spending by almost $5 trillion and increase the debt limit by about $1.5 trillion, or until March 31, 2024, whichever comes first.
U.S. Treasury Secretary Janet Yellen said lawmakers must raise the debt ceiling by June 1 or risk a default on U.S. debt obligations.
House Speaker Kevin McCarthy said Friday “the only responsible way to raise the debt ceiling is to limit reckless spending and get inflation under control.”
President Joe Biden put the blame on Republicans.
“MAGA House Republicans are threatening to default on America’s debts unless we give in to their demands,” he posted on Twitter. “Their wish list could cut thousands of jobs – including wildland firefighters, National Park rangers, and workers who regulate water quality. It doesn’t work for families.”
The CBO report warned of consequences if the U.S. were to come up short on cash: “Those actions could result in distress in credit markets, disruptions in economic activity, and rapid increases in borrowing rates for the Treasury.”
Excessive spending by the socialists in the government aka the communist Democrats and the RINO enablers. This has been going on for years and this shows one, the trash, low life politician communists in Washington DC and throughout the Country.
Republicans have said they won’t agree to raise the debt limit without spending cuts. Biden and Democrats have said Congress must raise the debt limit before discussing changes to spending or other budget changes.
Remember the lies, cons, deceptions, hypocrisy and treachery of the treasonous, woke, socialist Democrat Party cult and their supporters know no bounds.
Puppet Biden and his Democrat masters are saying “Give me the debt limit increase money, then maybe we will think about discussing changes to spending or other budget changes. Not going to do it but we will think about it.
March 29, 2023
THE INFLATION REDUCTION ACT BETRAYAL and CON
America is fast approaching another needless emergency—the raising of the national debt ceiling. This impending crisis isn’t an accident but a result of the inaction of various actors who refuse to confront fiscal reality, sit down, negotiate and make hard decisions for the sake of our nation’s future. While all parties have a responsibility to negotiate in good faith, recent actions make clear to me (Senator Joe Manchin) that the Biden administration is determined to pursue an ideological agenda rather than confront the clear and present danger that debts and deficits pose to our nation.
This treasonous Democrat Party has become our country’s most destructive and deadliest ENEMY!!!
EVERY Congress critter, should see THEIR PAY< halted, if the govt does shut down..
Democrats seem not too concerned about who will pay off this $30 trillion in debt, because they planned all along to do it with inflated worthless dollars, printed in such quantity by unelected Washington officials that have no accountability other than to the media, or the political party in power. The 3 bedroom home my father built in suburban Chicago for $17,000 in 1956 is now selling for over $300,000 dollars. The value of the home did not go up, in fact the neighborhood value and safety went down just like the value of our worthless dollars went down due to clever Democrat socialist redistributors of American wealth schemes from the earners to the social entitlement takers. Congress should pass a law that any unpaid or unfunded debt be paid for out of the coffers of the political party in power. When the Hundreds of Billions of interest you pay on the national debt each year exceeds what you spend on your military, I got news for you, you are already bankrupt. All that interest, much paid to foreign buyers of our debt is just another smoke and mirrors socialist redistribution of American wealth scheme, now on a worldwide basis. If your 401k foreign invested money disappears because of Biden killing the government controls of foreign business reporting requirements that American companies have to adhere to, don’t cry for me Argentina.
Back as a kid, i remember reading a book while in the UK, where due to inflation, skyrocketing prices etc, the cost of a loaf of bread, was something like 2 HUNDRED POUNDS.. A pint of milk, was like 80 pound.. AND THAT WAS back in the 80s…
Part of me, wonders, if liberals READ that novel, and said “YEA THIS sounds like a great idea!
Do not believe their lies, lies, lies. How about cutting back the lasr two pay raises the political oinkers gave themselves; this should say a few billion; how about no more billions for Ukraine as 10% probably belongs to the “big guy”. Look at one in particular who was used to live in minimum weekly wages even when tips were minimal but now makes many, many more bucks for doing even less; aok?
Yes, stop that taxpayer money flow to the Ukraine. Enough already! Suspend all Foreign Aid dollars. Close off the Borders , no admittance, turn the Invaders around. NO more money , aid, free lodging. Till the debt is reduced and Congress agree to a BALANCED BUDGET!!! GET it Done !
Cut all aid _ been saying that for years
Close our borders. HELLZZZ YES
Kick out those already here. another hellz yes.