The Congressional Budget Office projected Thursday that the government would be unable to pay its bills and risk default if Congress does not lift the federal debt ceiling by early to mid-October.
At that point, the Treasury would run out of cash with which to pay incoming bills, the budget office said. Ultimately, if the ceiling is not raised, there would be “delays of payments for government programs and activities, a default on the government’s debt obligations, or both.”
The projection from the CBO, Congress’ in-house budget experts, gives Congress a little more breathing room than suggested by the Trump administration. In recent weeks, Treasury Secretary Steven Mnuchin has suggested that Congress has until September. He has asked for Congress to raise the debt ceiling, without attaching conditions, before its August break.
Congressional Republicans have not arrived at a consensus for raising the debt ceiling.
Missing a payment on the federal debt would likely precipitate a market crisis.
