{"id":1930337,"date":"2023-05-13T10:25:45","date_gmt":"2023-05-13T14:25:45","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/extent-to-which-government-can-be-funded-without-debt-ceiling-is-uncertain-agency-warns\/"},"modified":"2023-05-13T10:28:30","modified_gmt":"2023-05-13T14:28:30","slug":"extent-to-which-government-can-be-funded-without-debt-ceiling-is-uncertain-agency-warns","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/extent-to-which-government-can-be-funded-without-debt-ceiling-is-uncertain-agency-warns\/","title":{"rendered":"Agency warns uncertainty on government funding without debt ceiling."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fextent-to-which-government-can-be-funded-without-debt-ceiling-is-uncertain-agency-warns%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1930337&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Uncertainty Looms Over Government Funds as Debt Ceiling Negotiations Continue<\/h2>\n<p>The Congressional Budget Office has issued a warning about the uncertainty surrounding government funds over the next few weeks as congressional leaders negotiate a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/republicans-have-done-our-part-mccarthy-blasts-biden-after-first-debt-ceiling-negotiation-in-months\/\" title=\"McCarthy criticizes Biden after first debt ceiling negotiation in months, says Republicans have fulfilled their duty.\">potential debt ceiling increase<\/a> with the White House. The debt ceiling, which prevents the federal government from spending beyond a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/government-wasted-shocking-amount-of-money-on-incorrect-payments-last-year\/\" title=\"Government Wasted Shocking Amount Of Money On Incorrect Payments Last Year\">predetermined national debt limit<\/a> of $31.4 trillion, was surpassed earlier this year. Treasury Secretary Janet Yellen has warned that the nation could face a default as soon as June 1 unless the debt limit is suspended or increased.<\/p>\n<h3>What the Report Says<\/h3>\n<p>The Congressional Budget Office, a nonpartisan agency that provides lawmakers with budgetary and economic analysis, has cautioned in a report that the \u201cextent to which the Treasury will be able to fund the government\u2019s ongoing operations will remain uncertain throughout May.\u201d The document added that the \u201cextraordinary measures\u201d officials have used to fund operations for the past several weeks could expire \u201cat some point in the first two weeks of June.\u201d<\/p>\n<ul>\n<li>If the debt limit is not raised or suspended before the Treasury\u2019s cash and extraordinary measures are exhausted, the government will have to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-set-to-hit-debt-ceiling-within-four-months-cbo-estimates\/\" title=\"US Set To Hit Debt Ceiling Within Four Months, CBO Estimates\">delay making payments<\/a> for some activities, default on its debt obligations, or both.<\/li>\n<li>Should remaining cash and extraordinary measures last until June 15, on the other hand, the government may be able to fund operations \u201cthrough at least the end of July\u201d as consumers and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/extent-to-which-government-can-be-funded-without-debt-ceiling-is-uncertain-agency-warns\/\" title=\"Agency warns uncertainty on government funding without debt ceiling.\">businesses pay expected quarterly taxes<\/a>.<\/li>\n<\/ul>\n<p>Treasury officials can, among other \u201cextraordinary measures,\u201d continue to pause investments into the Thrift Savings Plan and continue to suspend the issuance of new securities for the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund.<\/p>\n<h3>Debt Limit Negotiations<\/h3>\n<p>Disagreement about an amendment to the debt limit between Democrats and Republicans centers on whether the move will occur alongside broader spending reforms. President Joe Biden discussed mechanisms to increase the debt limit this week with House Speaker Kevin McCarthy (R-CA), House Minority Leader Hakeem Jeffries (D-NY), Senate Majority Leader Chuck Schumer (D-NY), and Senate Minority Leader Mitch McConnell (R-KY).<\/p>\n<p>Biden, who has contended that Republicans are risking economic calamity by asking for spending reforms, said in remarks that he found the meeting to be \u201cproductive,\u201d while McCarthy, who noted that Democrats waited more than three months to resume negotiations launched earlier this year, commented that he \u201cdid not find progress\u201d in the discussions.<\/p>\n<p>\u201cThe only thing we\u2019re asking is that next year we spend the same amount of money we spent five months ago,\u201d McCarthy said after the meeting, noting that the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/pressure-for-compromise-mounts-as-biden-mccarthy-resume-debt-limit-talks\/\" title=\"Biden and McCarthy under pressure to compromise in debt limit talks.\">debt limit talks<\/a> were the first time all four congressional leaders have met with Biden since the new Congress started earlier this year. \u201cUnfortunately in this meeting I heard nothing new.\u201d<\/p>\n<h3>The Risk of Default<\/h3>\n<p>A default would indeed cause a recession should the federal government, a major borrower of funds that investors broadly consider stable, neglect to repay obligations. The national debt, which surpassed the $31.4 trillion debt limit this year to reach $31.7 trillion, is meanwhile a source of persistent financial risk and a damper on economic growth.<\/p>\n<p>It remains to be seen how the negotiations will play out and what the ultimate outcome will be for the nation\u2019s finances.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Congressional Budget Office warned on Friday that there exists considerable \u201cuncertainty\u201d with respect to government funds over the next several weeks as congressional leaders negotiate over a potential debt ceiling increase with the White House. The debt ceiling, a policy established by Congress that prevents the federal government from spending beyond a predetermined national<\/p>\n","protected":false},"author":99,"featured_media":1930338,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[541],"tags":[6105,10142,5487,6513,5045,15390,3633],"class_list":["post-1930337","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-daily-wire","tag-agency","tag-ceiling","tag-debt","tag-funding","tag-government","tag-uncertainty","tag-warns"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1930337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1930337"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1930337\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1930338"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1930337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1930337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1930337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}