- The federal government is running out of money as debt ceiling talks reach a new impasse.
- The Treasury General Account was $68.3 billion on Wednesday, down from $140 billion on Friday.
- The current cash balance is the lowest since December 2021.
Cash continues to flow out of the Treasury as lawmakers have yet to offer a solution to the debt ceiling crisis.
According to the latest update, Ministry of Finance General Account It fell to $68.3 billion on Wednesday, down from $87.4 billion on Monday and $140 billion on Friday, the lowest since December 2021.
It’s also down significantly from the end of April, when the federal cash balance was $316 billion.
The Treasury General Account, among myriad expenditures such as rights and the salaries of federal employees, is used to service the national debt that keeps the United States from defaulting.
The federal government has spent $3.6 trillion so far this year, which began in October. And last year it spent a total of $6.3 trillion.
Government bank accounts will receive more taxes starting June 15, but the sudden drawdown this week puts Treasury funds at risk that they won’t last as long and could default. is rising.
Treasury Secretary Janet Yellen on Monday reiterated her warning that government funding could run out as early as June 1.
Lawmakers are still at odds over raising the debt ceiling. Hopes were boosted earlier this week by optimistic comments from President Joe Biden and House Speaker Kevin McCarthy that a deal could be reached soon.
But on Friday, a meeting of key negotiators was abruptly called off. Republican Rep. Garrett Graves walked out and told reporters the negotiations were “over.”Paused.“
“Unless they’re going to have a reasonable discussion about how they can actually move forward and do the right thing, we’re not going to sit here and have a dialogue with ourselves,” he said. said.
Graves said he didn’t know if further talks with the White House would take place any time soon.
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