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Treasury asks Congress to raise debt ceiling before summer recess

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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 the summer 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.

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.

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