Treasury to run out of cash to pay bills in October or November absent debt-limit hike, CBO says

The Treasury Department will probably run out of cash and be unable to make usual payments in October or November absent an increase in the U.S. debt limit, the Congressional Budget Office predicted Wednesday. The borrowing limit is suspended through July 31, and Treasury Secretary Janet Yellen has previously warned that so-called extraordinary measures her department uses to keep paying obligations may not last long past the end of July. Senate Republican Leader Mitch McConnell has suggested Democrats would need to raise the limit on their own, something Senate Majority Leader Chuck Schumer called "shameless, cynical and totally political." The White House on Tuesday said President Joe Biden expects Congress to raise the limit.

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