MNI BRIEF: US Would Breach Debt Likely In Late Summer - CBO

Congress has until August or September to broker a debt ceiling agreement if lawmakers want to avoid a first-ever default, according to the Congressional Budget Office Wednesday.

The nonpartisan scorekeeper, which typically details how much legislation would cost, said in a report U.S. lawmakers and the Trump administration have until sometime around August to raise or suspend the debt limit but the timing is approximate due to uncertainty over revenue collections and outlays.

"If the government’s borrowing needs are significantly greater than CBO projects, the Treasury’s resources could be exhausted in late May or sometime in June, before tax payments due in mid-June are received or before additional extraordinary measures become available on June 30," CBO said. "Conversely, if borrowing needs fall short of the amounts in CBO’s projections, the extraordinary measures will permit the Treasury to continue financing government activities longer than expected."