Debt ceiling vote needs to be moved up

Tax revenue falls short, so Congress will have to act before its August recess, Treasury Secretary Mnuchin warns

House Speaker Paul Ryan acknowledged Thursday that Congress will have to speed up a vote for raising the debt limit because of warnings from the Trump administration that the government is expected to run out of money to pay its bills in August rather than this fall.

“The debt ceiling issue will get resolved,” the Wisconsin Republican said. “The timing is what I think is the newsworthy thing here. (Tax) receipts aren’t quite what people thought they were, and that’s why (Treasury) Secretary (Steven) Mnuchin is moving the timetable up. So we’re looking at that new timetable.”

The debt limit, also called the debt ceiling, is the legal amount that the U.S. Treasury can borrow to pay the government’s bills, including Social Security and Medicare benefits, military salaries, tax refunds and other obligations. The limit is set by Congress.

Congress suspended the limit as part of a budget deal in 2015 that expired March 16. Lawmakers need to vote to reset the limit to about $20 trillion to reflect the nation’s debt.

Government officials had estimated that the measures Mnuchin used to raise cash to pay the government’s bills would not be exhausted until sometime this fall. Mnuchin, testifying at congressional hearings Wednesday and Thursday, warned lawmakers that they must act before they go on their annual August recess.

White House Budget Director Mick Mulvaney said tax receipts are coming in slower than expected, leaving the government short of funds to pay its debts unless Congress raises the limit.

Ryan faces resistance from conservative members of his caucus, who don’t want to raise the debt limit unless that action is tied to spending cuts.