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https://www.wsj.com/articles/u-s-could-default-as-soon-as-july-if-debt-ceiling-standoff-isnt-resolved-662b6807

U.S. Could Default as Soon as July if Debt-Ceiling Standoff Isn’t Resolved

CBO estimates U.S. could become unable to pay bills on time between July and September

As the U.S. nears the debt ceiling, the Treasury Department has begun deploying so-called extraordinary measures. WSJ’s Jon Hilsenrath explains what those measures are and how they help the country avoid a debt disaster.
By Andrew Duehren

WASHINGTON—The U.S. could become unable to pay all of its bills on time sometime between July and September, the nonpartisan Congressional Budget Office estimated, giving lawmakers several months to reach an agreement on lifting the debt limit and avoiding a default.

The Treasury Department ran up against the roughly $31.4 trillion debt limit in January. It is now deploying a series of special accounting maneuvers to keep paying the government’s obligations to bondholders, Social Security recipients and others.

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This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.