The federal government is likely to run out of borrowing authority sometime in October or November unless Congress acts to raise or suspend the debt ceiling, according to the Congressional Budget Office.
The CBO warning comes as Republican leaders have signaled they won’t likely cooperate to raise the debt limit.
“I can’t imagine a single Republican in this environment that we’re in now – this free-for-all for taxes and spending – to vote to raise the debt limit,” said Senate Minority Leader Mitch McConnell (R-KY) in an interview with Punchbowl News. “I think the answer is they need to put it in the reconciliation bill.”
McConnell was referencing the $3.5 trillion social spending plan that congressional Democrats are working to advance via the budget reconciliation process, without Republican votes.
Senate Majority Leader Chuck Schumer (D-NY) slammed McConnell for partisanship over the nation’s borrowing authority after Congress was forced into trillions of dollars in emergency spending last year to keep the economy from collapsing during the pandemic.
“This debt is Trump debt. It’s COVID debt,” Schumer said this week. “And the bottom line is that leader McConnell should not be playing political games with the full faith and credit of the United States. Americans pay their debts.”