WASHINGTON — Treasury Secretary Jacob Lew is telling Congress that the U.S. government will hit its borrowing limit in mid-October and urged lawmakers to reach a budget deal before then.
Lew says in a letter to Speaker John Boehner that the government is running out of accounting maneuvers it has used to avoid hitting the $16.7 trillion borrowing limit. He pressed Congress to raise the borrowing limit before then so Treasury can keep paying the government’s bills.
Lew said it’s impossible for Treasury to predict exactly when borrowing limit will be reached.
Earlier this year, Congress temporarily suspended the borrowing limit so lawmakers could focus on other budget debates. Treasury has kept the government operating for several months through its bookkeeping maneuvers. A smaller deficit this year has also helped.