The US Treasury is asking federal agencies for greater clarity and communication on the payments they expect to make and receive in the coming days to determine when the government will run short of cash.
The US government now has just over a week before their June 1st federal debt default date. A treasury spokesperson said the department is not asking agencies to delay any payments past their due dates but for increased communication about upcoming payments and receipts. Saying quote “to produce an accurate forecast around the debt limit, it’s critical that treasury have updated information on the magnitude and timing of agency payments,” the spokesperson said in an emailed statement.”
As in prior debt limit episodes, the treasury will continue to regularly communicate with all aspects of the federal government on their planned expenditures.” The treasury is searching for ways to conserve the government’s dwindling cash resources as their June deadline for possible default looms and tense negotiations drag on between the White House and republicans in congress over raising the $31.4 trillion borrowing cap.
According to an inside government memo, the treasury has asked agencies to notify them at least two days in advance about all deposits and disbursements of $50 million to $500 million, and five days in advance on all payments above $500 million.
