Treasury Evaluating Scenarios If Debt Limit Reached

“The Treasury Department said Wednesday it may have to take extraordinary measures to fund the government if the federal borrowing limit is reinstated this summer, but warned it could run out of cash much sooner than in previous debt limit episodes,” the Wall Street Journal reports.

“The Treasury said it expects Congress will vote to raise or suspend the borrowing limit before the current suspension expires on Aug. 1. If it doesn’t, the Treasury will take steps as it has in the past to continue to temporarily finance government operations.”

“But officials emphasized that the government continues to face sizable and uncertain borrowing needs related to the pandemic, as well as substantial uncertainty about government revenues and spending over the coming months.”