Treasury Risks July Payment Default If Lawmakers Fail to Raise Debt Limit, CBO Says
- Congressional Budget Office releases ‘X-date’ estimate
- Treasury Department hit federal debt limit last month
This article is for subscribers only.
The nonpartisan Congressional Budget Office warned that the federal government would be at risk of a payment default as soon as July if lawmakers fail to raise the debt limit.
The Treasury Department is currently using accounting maneuvers to keep making good on federal obligations, after hitting the statutory debt ceiling last month. While Treasury Secretary Janet Yellen signaled at the time those measures would last at least until early June, Wednesday’s CBO estimates offer an updated timeline.