Congress urged to move quickly.
Treasury Department officials urged Congress to increase the federal borrowing limit this summer. Otherwise, the federal government could run out of cash, much sooner than in previous debt-limit episodes.
Congress voted in July 2019 to suspend the limit through July 31 this year. If lawmakers can’t reach another agreement by then, the ceiling would automatically be reinstated and the Treasury wouldn’t be able to raise the additional cash from the sale of government securities.
Members of Congress have been urged to act quickly, but in the event they don’t, the Treasury Department said it would take extraordinary measures to keep paying the government’s bills in full and on time, as it has in the past. Those means, such as redeeming certain investments in federal pension programs and suspending new investments in those programs to raise cash, have typically taken several months.
In a call with reporters, a senior Treasury official said the government continues to face substantial uncertainty over the pace of revenues and spending, making it difficult to predict how long temporary measures might last this year.
As the Lord Leads, Pray with Us…
- For Congress as it gives consideration to increasing the federal debt limit.
- For Treasury Department officials as “extraordinary measures” would not last long in the current spending climate.
- That the administration would have wisdom as the president’s infrastructure $4.1 trillion plan and other government spending are debated.
Sources: Wall Street Journal, The Hill
