Treasury Department warns of potential cash shortage by August

SOURCE www.politico.com
The Treasury Department warns that it will likely run out of cash to pay the nation's bills by August, setting a deadline for Congress to act and avoid a catastrophic default on the U.S. debt. This deadline may also pressure congressional Republicans to pass their megabill before the cash runs out.

Key Points

  • Treasury Department warns of cash shortage by August
  • Congress urged to increase or suspend the debt limit by mid-July
  • GOP leaders face pressure to pass their megabill before the deadline

Pros

  • The warning provides a clear deadline for Congress to act on the debt limit issue
  • May pressure GOP leaders to pass their megabill before the cash runs out

Cons

  • Potential risk of a catastrophic default on the U.S. debt if action is not taken
  • Possible need for major policy concessions if GOP leaders fail to pass the bill