The exact date when the federal government will be unable to fully pay all of its bills remains uncertain, but it has become clearer that it will be reached sooner rather than later.
While Secretary Lew used November 5 as the date of exhaustion of extraordinary measures, the letter pointed out the uncertainties of the estimates.
Tax filing season has come to a close, and BPC has updated its projections of how long the Treasury could continue to pay all of the nation’s bills in full.
Another estimate from the Bipartisan Policy Center estimates that the government won’t run out of borrowing ability until December 31.
Thanks to increases in tax revenue, a sliding deficit, and extraordinary measures by the Treasury Department, there is time before the U.S. could default.
Barring quick action by policymakers, the 2015 period of operation at the debt limit could last longer than any of those in recent years.
Extraordinary measures and cash-on-hand should allow the government to continue meeting its financial obligations until sometime in the fourth quarter of 2015.