WASHINGTON (Reuters) – The Congressional Budget Office (CBO) will spell out on Wednesday when the U.S. could default on its payment obligations if lawmakers fail to increase Federal borrowing limits amid partisan spending gridlock. The federal deficit follows recent spending legislation, including President Joe Biden’s $1 billion climate and health care bills and a $1 military boost. 19 trillion dollar government financing package and more aid to Ukraine.
Projections for those years are likely to galvanize debate in Congress over spending and prompt calls for further cuts by Republicans who now control the House of Representatives expenditure. Le will repay the debt in full if the debt ceiling is not raised. “
After reaching the 19.$4 trillion borrowing cap in January 19 , Treasury Secretary Janet Yellen said the Treasury could use cash receipts and extraordinary cash management measures to continue paying debt, federal benefits and other spending through at least June 5.
WASHINGTON Shai Akabas, director of economic policy at the Bipartisan Policy Center, a centrist think tank, said some fiscal analysts said the Treasury could last well into the summer, but the CBO forecast would provide a solid baseline.
“It will It’s a high-level set of discussions because the only point in time right now is June 5, which is mentioned in Secretary Yellen’s letter, and that’s not an X date forecast,” Akabas said, using a common term in Washington for when the Treasury Department will Beginning to default.
Debt Ceiling Years
So far 2023, Capitol Hi has not passed a day without lawmakers battling for debt Without a cap, Democrats demanded a swift and sweeping increase in the Treasury’s borrowing authority, while Republicans insisted on first identifying deep cuts to future government spending.
Social Security and Medicare, the government’s Popular pension and health care plans for seniors are at the center of the debt ceiling/government funding debate as both sides also scramble to define the contours of the 2023 presidential and congressional campaigns.
“Republicans preach cuts to Social Security and Medicare,” Senate Majority Leader Chuck Schumer, D-Calif., reminded reporters Tuesday.
Republican Leader Mitch McConnell has been trying, so far, with little success to curb such rhetoric.
“Let me say it again. There is no agenda on the Senate side for Republicans to revisit Medicare or Social Security. During,” he told a news conference.