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Photographer: Stefani Reynolds/Bloomberg
Politics

Debt-Limit Steps May Run Out in October, Budget Office Says

Updated on
  • Agency says large cash balance will help cover expenses
  • Current two-year suspension of limit ends on July 31

U.S. lawmakers likely have until October or November to raise or suspend the debt limit, the Congressional Budget Office indicated, offering a wider window of time to address the issue than the Biden administration had previously signaled.

Without an increase, the Treasury Department’s ability to borrow would be exhausted and it would probably run out of cash sometime in the first quarter of the fiscal year starting Oct. 1, “most likely in October or November,” the nonpartisan CBO said in a report Wednesday. The debt limit, or the total debt the Treasury can issue to the public and other government agencies, has been on a two-year hold that expires July 31.