The nonpartisan agency’s new estimate is largely in line with Treasury Secretary Janet Yellen’s June 1 deadline for a potential default, underscoring the urgency of addressing the bitter standoff between Republicans and Democrats over the raise. the statutory borrowing limit of $31.4 trillion.
Negotiations continue between White House officials and aides to Republican and Democratic leaders in Congress, but a meeting scheduled for Friday on the public debt ceiling between President Joe Biden and senior lawmakers has been postponed until next week. .
The budget office report expressed hope for more time to negotiate, saying the Treasury Department could “perhaps” fund government operations until at least the end of July, if available cash and extraordinary borrowing measures continued through June 15, with estimated tax payments due by an annual quarter.
On June 30, the Treasury Department will be able to obtain $145 billion through new exceptional borrowing measures by suspending investments in two civil servants’ pension and health funds.
“The extent to which the government will be able to fund existing government operations will remain uncertain through May, even if Treasury funds do not finally run out until early June,” the budget office said in a statement. communicated.
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