The nonpartisan agency’s new estimate is largely in line with Treasury Secretary Janet Yellen’s June 1 deadline for a potential default, underlining the urgency of settling the bitter standoff between Republicans and Democrats over raising the $31.4 trillion legal borrowing limit.
Negotiations are continuing 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 was postponed until next week.
The budget office report expressed hope for more time to negotiate, saying the Treasury Department “maybe” could fund government operations until at least the end of July, if available liquidity and extraordinary borrowing measures continued until June 15, with estimated tax payments due by a quarter. annual.
On June 30, the Treasury Department will be able to obtain $145 billion through new exceptional borrowing measures by suspending investments in two government employee retirement and health funds.
“The extent to which the government will be able to fund existing government operations will remain uncertain throughout May, even if treasury funds do not eventually run out until early June,” the budget office said in a statement.
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