Jul 12, 2019

Mnuchin pushes Congress to act on debt ceiling

Steven Mnuchin. Photo: Chip Somodevilla/Getty Images

Treasury Secretary Steven Mnuchin on Friday requested that Congress increase the debt ceiling before its summer recess, suggesting the Treasury could run out of cash sooner than expected.

Why it matters: Mnuchin now says the Treasury Department could run out of cash in early September, before Congress reconvenes — a projection that beats the increasingly frantic predictions of the Bipartisan Policy Center.

  • Global markets tend to react when members of Congress or White House officials float anything other than drama-free debt-ceiling hikes, Axios' Jonathan Swan and Caitlin Owens note.

The state of play: House Speaker Nancy Pelosi said Thursday she wanted to find a solution to raise the debt ceiling before the House leaves for the August break on July 26, the Wall Street Journal reports.

The big picture: The U.S. budget deficit hit $747.1 billion over the first 9 months of the fiscal year, a 23% increase from the same point in 2018, Bloomberg reported on Thursday.

Go deeper: What happens if the U.S. can't pay its bills

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Trump endorses two-year budget, debt ceiling deal with Democrats

President Trump on Monday tweeted his endorsement of a two-year budget deal with Democratic leaders Nancy Pelosi and Chuck Schumer.

I am pleased to announce that a deal has been struck with Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer, Speaker of the House Nancy Pelosi, and House Minority Leader Kevin McCarthy - on a two-year Budget and Debt Ceiling, with no poison pills. This was a real compromise in order to give another big victory to our Great Military and Vets!
Go deeperArrowJul 22, 2019

House votes to suspend debt ceiling through 2021

Illustration: Aïda Amer/Axios

The House voted 284-149 on Thursday to pass a budget that suspends the debt ceiling through 2021 — allowing the government to borrow money for 2 more years — and raises spending caps by about $320 billion.

The big picture: The federal debt exceeded $22 trillion in February and the Congressional Budget Office projects it to reach "unprecedented levels" over the next 30 years if current laws go unchanged. The federal deficit has grown 23% this fiscal year. Thursday's deal passes the buck on the next federal debt showdown until after the 2020 elections.

Go deeperArrowJul 25, 2019

Senate passes $2.7 trillion budget deal

Illustration: Aïda Amer/Axios

The Senate voted 67-28 to pass a $2.7 trillion budget deal Thursday that would suspend the debt ceiling through 2021, sending the package to President Trump's desk after the House passed it last week.

Why it matters: The Congressional Budget Office projected that the national debt would reach "unprecedented levels" in the next 30 years should laws remain the same. It exceeded $22 trillion in February, and the federal deficit has grown 23% this fiscal year.

Go deeperArrowAug 1, 2019