Treasury Gaming The Debt Crisis, Tells Agencies To Stall On Payments

House Speaker Kevin McCarthy of Calif., speaks as he meets with President Joe Biden to discuss the debt limit in the Oval Office of the White House, Monday, May 22, 2023, in Washington. (AP Photo/Alex Brandon)
  • Bracing for prolonged debt ceiling negotiations, the Treasury Department has begun to tell federal agencies to delay making payments when they can.
  • The effort is to save up some funding to delay the so-called X-Date when the government goes “broke.”
  • In a memo, an official directed agencies to tell Treasury at least two days in advance about all deposits and disbursements between $50 million and $500 million, while agencies should notify Treasury five days in advance for payments even greater than that.