Federal Debt….they still want more

It seems like the issue of federal debt and the amount they want to issue will never go away.  Treasurey Secretary Jack Lew told Congress yesterday that the nation has a new deadline, October 30th.  After that date, lawmakers need to extend the debt limit, according to Lew, to keep the government in operation.  Below is an article about this…

“Given this unavoidable uncertainty, Treasury is not able to provide a specific estimate of how long the extraordinary measures will last,” Lew said in a letter delivered to congressional leaders.

The letter arrived on Capitol Hill as the parties prepared for September budget battles that could lead to a government shutdown at the end of the fiscal year on Sept. 30.

Economic uncertainties include projecting how much revenue the government will take in through September tax receipts, Lew said.

Still, the Treasury Secretary said special measures his department has been using “will not be exhausted before late October, and it is likely that they will last for at least a brief additional period of time.”

The U.S. actually hit its statutory debt limit on March 16, when Treasury began utilizing the special measures, Lew said.

The Obama administration and congressional Republicans have clashed over the debt ceiling before, nearly leading to an unprecedented default on government obligations.

Sarah Curry

Sarah Curry is Director of Fiscal Policy Studies at the John Locke Foundation.

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