The U.S. Treasury is pressing Congress to act quickly in raising the debt ceiling before the department runs out of money to pay the nation’s bills, The New York Times reported Monday.
Annie Lowrey writes lawmakers are divided over proposals to reduce the deficit and increase the debt limit and some Republicans have suggested delaying portions of the health care reform as part of any agreement.
Treasury Secretary Jack Lew told House Speaker John Boehner, R-Ohio, in a letter that if Congress fails to decide on the issue by mid-October, the U.S. “could face an immediate cash shortfall.”
“Indeed, such a scenario could undermine financial markets and result in significant disruptions to our economy,” Lew said in his letter obtained by the Times.
“We’re not going to raise the debt ceiling without real cuts in spending,” Boehner said last month.
The article notes Congress approved a measure in January that seeks to boost the current $16.7 trillion debt limit by about $300 billion.