The U.S. Treasury says higher-than-expected tax receipts have made it possible to push back by three weeks the absolute “drop dead” date for raising the limit on federal borrowing. The new date is Tuesday, August 2, the last week Congress is in session, before its summer recess.
In a letter delivered to every lawmaker, Treasury Secretary Tim Geithner said his department is prepared to stop selling a type of bond that helps states and cities finance their operations and will stop reinvesting U.S. securities in federal employee retirement funds.
Also, in the letter, Geithner reminded lawmakers their vote would permit borrowing for obligations already approved — meaning that lawmakers in essence already voted in support of a debt limit increase by approving the House budget resolution.
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