U.S. Treasury Moves Debt Limit Deadline Up to Nov. 5

Just one day after Congress and President Barack Obama averted a partial government shutdown, Treasury Secretary Jack Lew informed Congress it must extend the debt limit by early next month.

In a letter to Congress Thursday, Lew said Congress must act to expand the United States' borrowing authority by Nov. 5. The debt limit has already been the subject of political showdowns between Obama and Congress.

“Based on this new information, we now estimate that Treasury is likely to exhaust its extraordinary measures on or about Thursday, November 5,” Lew wrote in a letter to outgoing House Speaker John Boehner (R-Ohio). “At that point, we could be left to fund the government with only the cash we have on hand, which we currently forecast to be below $30 billion. This amount would be far short of net expenditures on certain days, which can be as high as $60 billion.”

AP Photo/Andre Penner

The issue of the debt limit vote could play into the vote for a new House speaker, and could make the budget showdown more contentious. The continuing resolution to keep the government open lasts through Dec. 11.

Lew estimates the government will have less than $30 billion on hand by Nov. 5, and anticipates that the government’s immediate bills could exceed $60 billion.

“We anticipate that our remaining cash would be depleted quickly,” Lew wrote. “Without sufficient cash, it would be impossible for the United States of America to meet all its obligations for the first time in our history.”