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Treasury May Run out of Cash as Soon as June 1

In a letter to lawmakers today, Janet Yellen says the Treasury Department’s “best estimate” is that its extraordinary accounting measures will no longer be able to satisfy all the government’s obligations by early June.

By Viktoria Dendrinou | May 01, 2023 at 05:06 PM
Photo: U.S. Treasury Secretary Janet Yellen arrives to deliver remarks at Johns Hopkins University’s School of Advanced International Studies (SAIS) on April 20 in Washington, D.C. (Photo by Anna Moneymaker/Getty Images) U.S. Treasury Secretary Janet Yellen arrives to deliver remarks at Johns Hopkins University’s School of Advanced International Studies (SAIS) on April 20 in Washington, D.C. (Photo by Anna Moneymaker/Getty Images)

Treasury Secretary Janet Yellen told U.S. lawmakers that her department’s ability to use special accounting maneuvers to stay within the federal debt limit could be exhausted as soon as the start of June.

“Our best estimate is that we will be unable to continue to satisfy all of the government’s obligations by early June, and potentially as early as June 1,” Yellen said in a letter to Speaker of the House Kevin McCarthy and other congressional leaders from both parties. Given that revenue and spending flows are variable, “the actual date that Treasury exhausts extraordinary measures could be a number of weeks later than these estimates,” she wrote.

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