Treasury Secretary sends desperate letter to Congress saying they spent all the money
Treasury Secretary Steve Mnuchin is saying that the federal government could "run out of cash" as early as September in a desperate letter to Congress asking them to immediately increase the debt ceiling.
This is much earlier than previously anticipated suggesting a complete lack of accountability and responsibility by the federal government.
Here is the full letter he sent, seen below.
Because of this lawmakers and the Trump administration are rushing to pass a spending deal that raises the U.S. borrowing limit to avoid another government shutdown.
Since funding will run out for the current fiscal year on September 30, and Congress will be in recess, the deal will have to happen soon. They're worried they won't be able to.
The last time the government shut down it was for a record 35 days. Many federal employees went without paychecks for weeks and tons of people lost out on work altogether.
Republicans like to call themselves fiscal conservatives but the first two years of Trump's presidency were controlled entirely by the GOP, and we still have record level annual deficits.
Over the last nine months, the debt rose to more than $747 billion, a 23 percent increase over the previous fiscal year. The Treasury Department said those figures are expected to increase to more than $1 trillion before September 30.
One reason for the surprise, aka non-surprise, is because of the Republican-led tax cuts that Trump passed in his first year as president. The Treasury just isn't taking in enough money. The non-partisan Congressional Budget Office said this was going to happen but we just didn't listen.