US may run short of cash after June 1 without debt limit hike -Treasury

Kitco Media
By Reuters
Published:
Updated:
Reuters
WASHINGTON, May 1 (Reuters) - The U.S. Treasury Department said Monday it now expects to be able to pay all U.S. government obligations only through June 1 without a federal debt limit increase, adding urgency to a bitter fiscal fight between congressional Republicans and Democrats and the White House. U.S. Treasury Secretary Janet Yellen said in a letter to Congress that the agency will be unlikely to meet all U.S. government payment obligations by "early June." The debt ceiling could become binding by June 1, she said.


After hitting the $31.4 trillion borrowing cap on Jan. 19, Treasury Secretary Janet Yellen previously told Congress Treasury would keep up payments on debt, federal benefits and make other outlays at least through June 5 using cash receipts and extraordinary cash management measures. The new date reflects a more specific estimate, based on taxes collected during the April 2023 income tax filing season. (Reporting by David Lawder)

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