WASHINGTON Jan 31 The U.S. Treasury Department
said it could redeploy emergency cash measures from May 19 if
necessary to ensure the government could keep borrowing money, a
Treasury official said on Thursday.
A bill allowing the U.S. government to borrow money beyond
its record $16.4 trillion debt limit won final Congressional
approval earlier on Thursday. The bill, which needs to be signed
by President Barack Obama, suspends the debt limit until May 19.
The Treasury's so-called "extraordinary measures" would
likely push into July the date before the government hits its
legal borrowing limit as imposed by Congress.
Congress has wrangled over raising the debt ceiling in a
showdown between Republicans, who demand more spending cuts to
shrink deficits, and Democrats, who favor reducing deficits with
a mix of spending cuts and tax hikes.
The U.S. first touched the debt limit on Dec. 31, and the
Treasury Department began shuffling around funds to ensure the
government could still make all its payments while Congress
debated the debt limit.
These measures were set to expire between mid-February and
Once Obama approves the legislation, the Treasury said it
would start unwinding the cash measures it was using, including
restoring money borrowed from various trust funds.