Steven Mnuchin, Secretary of the Treasury of the United States of America, during a G-20 meeting on June 08, 2019 in Fukuoka, Japan.
Florian Gaertner | Photothek | Getty Images
The Treasury Department said it could run out of cash by early September, asking Congress to increase the debt ceiling before lawmakers leave for a six-week recess.
“Based on updated projections, there is a scenario in which we run out of cash in early September, before Congress reconvenes,” Treasury secretary Steven Mnuchin said in a letter to House Speaker Nancy Pelosi on Friday.
Lawmakers and the Trump administration are rushing to pass a spending agreement and raise the U.S. borrowing limit to avoid another government shutdown. Mnuchin previously said the White House will offer a one-year continuing resolution and debt ceiling increase if Congress and the White House cannot strike a spending deal.
Dear Madam Speaker:
Since there is a reasonable uncertainty in projecting government cash flows, it is impossible to identify precisely how long extraordinary measures will last. We model various scenarios for our cash projections. Based on updated projections, there is a scenario in which we run out of cash in early September, before Congress reconvenes.
As such, I request that Congress increase the debt ceiling before Congress leaves for summer recess.
Sincerely,
Steven T. Mnuchin
This is a developing story. Check back for updates.
