Debt Limit

Thursday, October 1, 2015

WASHINGTON — The federal government will hit a legal debt limit and be unable to borrow more money around Nov. 5, U.S. Treasury Secretary Jack Lew said on Thursday.

In a letter to U.S. Congressional leaders, Lew said the federal government would likely have less than $30 billion in cash at that point, straining its ability to pay its obligations.

“I respectfully urge Congress to take action as soon as possible and raise the debt limit,” Lew said.

The federal government is currently scraping just under its $18 trillion legal debt cap, with political wrangling over fiscal policy putting Washington at risk of not being able to pay its bills.

Lew said that the latest corporate and individual tax receipts received by the Treasury were lower than previously projected and trust fund investments higher, resulting in a net decrease in money available to the U.S. government.

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