Treasury takes extraordinary measures as Congress grapples with the federal debt ceiling.
On Thursday, the United State reached its borrowing limit, and the Department of Treasury began taking “special measures” to keep the government from defaulting on its obligations. Between tax and other revenues it takes in, the government can pay most but not all of its bills. An act of Congress would be required to increase the debt ceiling if the government is to borrow the rest of the money.
The majority members of the House of Representatives have said they will insist on spending cuts in exchange for an increase in the debt ceiling. But President Biden’s administration and the majority in the Senate have indicated they will not negotiate on the debt limit.
Reaching the debt ceiling is not an economic calamity at this point, but the U.S. could default on its debt by summer if Congress does not act.
As the Lord Leads, Pray with Us…
- For Speaker McCarthy and members of the majority in the House as they seek solutions to the nation’s debt limit.
- For leaders and members in the Senate as they determine whether or not to negotiate with the House on spending reductions.
- For the president and his administration as they pursue increased borrowing for the nation.
Sources: Washington Examiner, ABC News, Wall Street Journal, CNN
