Feds to Reach Debt Ceiling Early NovemberOctober 7, 2015
On Oct. 1, 2015, Treasury Secretary Jacob Lew wrote a letter to House Speaker John Boehner (R-Ohio) urging Congressional action on the debt ceiling. In the letter he stated that, given tax receipts that were lower than previously projected, Treasury’s extraordinary measures are likely to be exhausted by Nov. 5, 2015. Absent Congressional action to increase the government’s authority to borrow, this deadline could force the U.S. to default.
Lew cited the potential “catastrophic damage that default would have on our economy and global financial markets” and strongly urged Congress to act promptly to address the debt ceiling. Lew’s letter and the new timeline raises the stakes for Boehner’s last month in Congress—his previous retirement announcement has him officially stepping down on Oct. 30.
There have been rumors a debt ceiling increase could be tacked on to the must-do highway bill, however some on the Hill have been talking about just a short-term extension which would essentially eliminate that bill as a vehicle for the debt increase. Another potential option is that this new debt deadline speeds up talks on a broader spending bill which, in order to avoid another government shutdown, was approved under a temporary continuing resolution set to expire in December.
NSBA urges Congress to take a long-term look at the debt ceiling and act to ensure our nation’s fiscal sustainability for many years to come. An increase in the current debt limit should not be done in a vacuum and must include discussions about reducing the overall debt. Click here for more.