Treasury Says Debt Limit Must Be Raised by Nov. 5

WASHINGTON—The government will run out of money to pay its bills sooner than previously thought, the Treasury Department said Thursday, accelerating the fiscal deadlines that confront Congress amid a leadership scramble on Capitol Hill.

Treasury Secretary Jacob Lew said the government would be left with just $30 billion in cash on or around Nov. 5 and called on Congress to immediately raise the federal borrowing limit to avoid market disruptions and threats to the nation's credit rating.

The Treasury Department has used emergency measures to avoid breaching the debt ceiling, at $18.1 trillion, since mid-March. Mr. Lew had previously estimated those measures would last until late October and possibly longer but refrained from giving a specific date because of a surge of tax payments due Sept. 15.

On Thursday, Mr. Lew said those tax receipts were lower than previously projected, while other payments the government made last month were higher, lowering the cash resources available to the Treasury.

"Without sufficient cash, it would be impossible for the United States of America to meet all of its obligations for the first time in our history," Mr. Lew said in a letter to Congress.

In August, the Congressional Budget Office estimated the U.S. would exhaust measures to remain under the debt limit by late November or early December.

Lawmakers face a series of other fiscal deadlines this fall. Congress on Wednesday approved a stopgap funding measure to keep federal agencies running through Dec. 11, while the highway trust fund must be reauthorized by Oct. 29.

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(END) Dow Jones Newswires

October 01, 2015 18:35 ET (22:35 GMT)

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