Republicans set the stage for another debt ceiling showdown

(Image credit: Anna Moneymaker/Getty Images)

published 21 July 2021

The Congressional Budget Office on Wednesday warned that the Treasury Department "would probably run out of cash sometime" in October or November 2021 if Congress doesn't raise the debt ceiling from 22 trillion or extend a suspension on a limit enacted back in 2019.

Until then, the CBO said, the government could rely on "extraordinary measures" to keep paying its bills. But, ultimately, the question will come down to legislation — and it seems a showdown is brewing. Democrats want to raise the ceiling, but Republicans are unlikely to vote for an increase. Senate Minority Leader Mitch McConnell (R-Ky.) suggested to Punchbowl News on Wednesday that Democrats should include the measure in the $3.5 trillion budget deal they plan to pass through the process of reconciliation.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Explore More

Tim is a staff writer at The Week and has contributed to Bedford and Bowery and The New York Transatlantic. He is a graduate of Occidental College and NYU's journalism school. Tim enjoys writing about baseball, Europe, and extinct megafauna. He lives in New York City.

Subscribe to The Week

Sign up for The Week's Free Newsletters

Sign up for Today's Best Articles in your inbox