Finance Minister Scott Bessent is preparing to testify before the Senate Finance Committee during his hearing in the Senate on January 16, 2025 in Washington, DC, in the Senate office of the Senate (Photo by Chip Somodevilla/Getty Images)
Washington – The Ministry of Finance announced on Friday that the congress had to address the debt limit before August and the Republicans set a fixed period to complete the “large, beautiful bill” that increases the nation’s credit limit by up to 5 trillion dollars.
Finance Minister Scott Bessent wrote in A letter For the congress leaders that “there is a reasonable probability that the cash and extraordinary measures of the Federal Government will be exhausted in August, while the congress is available during a break.
“Therefore, I respect the congress with respect to increase or suspend the debt limit by mid -July before its planned break in order to protect the full faith and credit of the United States.”
The projection marks the first time that the Trump government has publicly burdened when the government has probably been delayed since the last suspension in January.
In the months since then, the financial department has used accounting maneuvers who are known as extraordinary measures in order to pay all invoices in the country completely and on time.
The projection of the Ministry of Finance is similar to a report by the impartial congress office in the congress Published in March The country’s prediction would be delayed in August or September, unless the congress acted before.
Reconciliation package
The Republicans hope to escalate the debt limit without having to negotiate a cross -party agreement with Democrats, so that the legislator has addressed the debt limit in recent decades.
The GOP leaders are planning to escalate the debt limit between $ 4 trillion and $ 5 trillion in the 11-tok reconciliation package, which they operate to fix tax law, to revise university aid and reduce federal expenses.
The spokesman Mike Johnson, R-La.
GOP senators will probably propose several changes to the package, and all changes to the Senate would require that the legislation would receive a final tax in the house before it could go to President Donald Trump’s desk.
The forecast of the Ministry of Finance that a debt limit will probably be made if no measures are taken before August if the Republicans have to reach the final agreement.
Caution against waiting
Besser also warned legislators about the last minute to do their work.
“Earlier episodes have shown that the waiting up to the last minute to expose or increase the debt limit can have serious adverse consequences for financial markets, companies and the federal government, damage to companies and consumer trust and short -term credit costs for taxpayers,” he wrote. “An failure to expose or increase the debt limit would devastate our financial system and reduce the security and global management position of America.”
A delay in the country’s debts would issue the Federal Government to just the money that it has, and probably delayed, incomplete or non -existent payments for thousands of programs, including social security, medicare, medicaid, troop wages, veteran services and nutritional programs, including.
This would also lead to a downturn in the global economy, a recession is one of the better scenarios.
A failure differs greatly from a partial closure of the government and would lead to significant consequences for federal expenditure and economy.
