Congressional Predictions on U.S. Debt Default

The Congressional Budget Office stated today, Friday, that there is a "high probability" that the United States will default on its obligations during the first two weeks of June unless the debt ceiling is raised. In a statement, it noted, "The government's ability to finance ongoing operations will remain uncertain throughout May, even if Treasury funds do not run out until early June." Negotiations will continue between White House officials and aides to Republican and Democratic leaders in Congress. The Budget Office's report expressed hope for more time to negotiate, stating that the Treasury "might" be able to fund government operations until at least the end of July if available liquidity and extraordinary borrowing measures are sustained until June 15, coinciding with the due date for quarterly estimated tax payments. On June 30, the Treasury could raise $145 billion through new extraordinary borrowing measures by suspending investments in two government employee retirement and health funds.