Keywords: Here’s when the government’s bills are due, U.S. tries to avoid default
In a bid to avoid defaulting on its debt, the United States government has set several deadlines for its bills. Here’s when the government’s bills are due:
Treasury Secretary Janet Yellen stated that the government will run out of cash to pay its bills unless Congress raises or suspends the debt limit by August.
The Bipartisan Policy Center estimated the deadline to be in the first half of October. The deadline could potentially come earlier if the treasury has to act on extraordinary measures
The exact timing of the deadline remains unclear due to factors, including the variability of tax revenue and government spending patterns.
Experts recommend that the government increase the debt ceiling or suspend it altogether to prevent a financial crisis. If Congress does not take action, the United States could default on its debts and face severe economic consequences.
In a previous default, the federal government experienced a downgrade of its credit rating, which led to increased borrowing costs for years afterward.
Several factors have contributed to the current financial dilemma. The COVID-19 pandemic has resulted in a sharp rise in government spending, with economic aid packages costing trillions of dollars.
Simultaneously, the government has experienced a decline in tax revenue due to the pandemic’s negative economic impact. In addition, political gridlock and changing partisan power dynamics have made it difficult for Congress to agree on a course of action.
In conclusion, the United States government is facing a critical situation as it tries to avoid defaulting on its debts. The government has set deadlines for its bills, with the Treasury Secretary estimating that it will run out of cash to pay its bills by August unless the debt limit is increased. Experts urge Congress to take action to prevent a financial crisis with potentially severe economic consequences.