The federal government will not reach its statutorily-set debt limit of $16.7 trillion until October or November, according a report released June 11 by the Congressional Budget Office.
Congressional Republicans have indicated that they want an agreement to proceed on tax reform before agreeing to extend the debt limit further. If federal policymakers do not agree to extend the debt limit before then, they will first be faced with a decision about how to prevent a government shutdown, which could begin on Oct. 1 if spending legislation is not enacted.
House Republicans recently charged the Obama administration with threatening a shutdown when it said it would veto House GOP spending bills that would cut domestic spending. Little progress has made in continued discussions over a larger budget agreement.
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