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    U.S. Could Run Out of Cash by May, Budget Office Predicts

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    The Congressional Budget Office said that the so-called X-date could occur as early as spring if Congress does not lift or suspend the nation’s debt limit.The U.S. could run out of money to pay its bills by late May if Congress does not raise or suspend the nation’s debt limit, the Congressional Budget Office said on Wednesday.The forecast puts added pressure on Congress and the Trump administration to address the borrowing cap, which restricts the total amount of money that the United States is authorized to borrow to fund the government and meet its financial obligations. A protracted standoff later this year could rattle markets and complicate President Trump’s plans to enact more tax cuts.The C.B.O. noted that its forecast is subject to uncertainty over how much tax revenue the federal government will collect this year. It expects that the United States will have sufficient funds to keep paying bills through August or September. However, it said that if borrowing needs exceed its projections, the U.S. could run out of cash by late May or sometime in June.“The projected exhaustion date is uncertain because the timing and amount of revenue collections and outlays over the intervening months could differ from C.B.O.’s projections,” the budget office said in a report.The so-called X-date is the moment when the United States is unable to pay its bills, including interest payments to investors who hold government debt. Failure to meet those obligations could result in the United States defaulting on its debt. The U.S. has never defaulted on its debt, which is considered one of the safest investments in the world, and brinkmanship over missed payments could be economically damaging.The national debt is now approaching $37 trillion. Lawmakers agreed in June 2023 to suspend the $31.4 trillion debt limit until Jan. 1, 2025.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump Signs Spending Bill to Fund Government

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      President Trump on Saturday signed the government funding bill passed by the Senate on Friday. The bill was passed just hours before a midnight deadline to avoid a lapse in funding, which would have shut down the government.The signing of the bill ended a week of drama on Capitol Hill. On Tuesday, the House passed the legislation, which funds the government through Sept. 30, in a mostly party-line vote that reflected how Republican fiscal hawks have swallowed their concerns about spending in deference to Mr. Trump. The vote was 217 to 213, with only one Republican, Representative Thomas Massie of Kentucky, voting against the legislation. One Democrat, Representative Jared Golden of Maine, voted yes.That sent the measure to the Senate, which spent the rest of the week deliberating whether to accept the Republican bill from the House, or send it back and shut down the government at 12:01 a.m. Saturday.The key vote came on Friday afternoon, after days of Democratic agonizing that divided the party. That procedural vote, which ended debate and moved the bill to a final vote, needed the support of some Democrats. Senator Chuck Schumer, the Democratic leader, and nine other members of his caucus supplied the votes needed to effectively thwart a filibuster by their own party and prevent a shutdown.The final vote to pass the spending measure and send it to Mr. Trump to sign was 54 to 46, nearly along party lines.Carl Hulse More

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      The Democratic Divide: Would a Shutdown Have Helped or Hurt Trump?

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      When Senator Chuck Schumer, Democrat of New York and the minority leader, announced that he would vote with Republicans to clear the way for passage of a stopgap spending bill, he argued that a government shutdown would further empower President Trump and Elon Musk to defund government programs and shrink federal agencies.“Under a shutdown, the Trump administration would have full authority to deem whole agencies, programs and personnel nonessential, furloughing staff with no promise that they would ever be rehired,” Mr. Schumer said on Thursday.But many Democrats, who were stunned and enraged by Mr. Schumer’s stance, argued that it was in fact the spending extension that would clear the way for Mr. Trump’s executive orders and Mr. Musk’s Department of Government Efficiency to continue to reshape the government, running roughshod over Congress in the process.Behind the political divide over how best to push back against Mr. Trump was a practical question: Does the White House have more power or less when the government shuts down?It’s a complicated subject. Here’s what to know:What happens in a government shutdown?When the government shuts down, agencies continue essential work, but federal employees and contractors are not paid. Many employees are furloughed until Congress acts to extend new funding.Federal agencies typically make contingency plans that lay out who should keep working and what programs need to operate during a shutdown. But spending experts said the decisions about what is deemed “necessary” or “essential” ultimately rest with the White House Office of Management and Budget, currently run by Russell T. Vought.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Chuck Schumer: Trump and Musk Would Love a Shutdown. We Must Not Give Them One.

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      Over the past two months, the United States has confronted a bitter truth: The federal government has been taken over by a nihilist.President Trump has taken a blowtorch to our country and wielded chaos like a weapon. Most Republicans in Congress, meanwhile, have caved to his every whim. The Grand Old Party has devolved into a crowd of Trump sycophants and MAGA radicals who seem to want to burn everything to the ground.Now, Republicans’ nihilism has brought us to a new brink of disaster: Unless Congress acts, the federal government will shut down Friday at midnight.As I have said many times, there are no winners in a government shutdown. But there are certainly victims: the most vulnerable Americans, those who rely on federal programs to feed their families, get medical care and stay financially afloat. Communities that depend on government services to function will suffer.This week Democrats offered a way out: Fund the government for another month to give appropriators more time to do their jobs. Republicans rejected this proposal.Why? Because Mr. Trump doesn’t want the appropriators to do their job. He wants full control over government spending.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      House Republicans Unveil Spending Bill to Avert Government Shutdown

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      House Republicans on Saturday unveiled a measure to fund the government through Sept. 30, boosting spending on the military and daring Democrats to oppose it and risk being blamed for a government shutdown that would begin after midnight Friday.The 99-page legislation would slightly decrease spending overall from last year’s funding levels, but would increase spending for the military by $6 billion, in a nod to the concerns of G.O.P. defense hawks that stopgap measures would hamstring the Pentagon. It would not include any funds for any earmarks for projects in lawmakers’ districts or states, saving roughly $13 billion, according to congressional aides.The bill provides a slight funding boost for Immigration and Customs Enforcement — an additional $485 million — but gives the administration more flexibility on how the agency can spend it. It also increases funding for the federal program that provides free groceries to millions of low-income women and children, known as W.I.C., by about $500 million.Speaker Mike Johnson in the Capitol this week. If Democrats are unanimously opposed to the Republicans’ spending bill, Mr. Johnson will have just a vote or two to spare to get the bill through the House next week.Kenny Holston/The New York TimesIt was unclear whether the legislation could pass the Republican-controlled Congress. Speaker Mike Johnson will need to navigate the bill through his extremely narrow House majority as early as Tuesday and has just a vote or two to spare if Democrats are unanimously opposed. The pressure would shift quickly to the Senate if House Republicans can pass the legislation, raising the question of whether Democrats would mount a filibuster against the bill and trigger a shutdown.While conservative House Republicans have in the past dug in and opposed such spending bills, forcing Mr. Johnson to rely on Democrats to keep the government open, President Trump called on Republicans to unite and push this measure through so he and Republicans on Capitol Hill could focus on their new budgetary and tax-cutting plans.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      PCE Report Showed Inflation Eased Slightly in January

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      But consumer spending unexpectedly slowed, complicating the central bank’s plans for interest rates.Getting inflation under control since the worst surge in decades has been a bumpy process in recent months. New data on Friday showed a little progress, but also an unexpected pullback in consumer spending, complicating the path forward for the Federal Reserve as it debates when to restart interest rate cuts.The central bank’s preferred inflation measure, released on Friday, climbed 2.5 percent in January from a year earlier, slightly lower than the previous reading of 2.6 percent but still well above the central bank’s 2 percent target. On a monthly basis, prices increased 0.3 percent, in line with December’s pace.The “core” personal consumption expenditures price index, which strips out volatile food and energy costs and is closely watched as a gauge for underlying inflation, rose another 0.3 percent in January. Compared to the same time last year, it is up 2.6 percent, data from the Commerce Department showed. In December, it rose at an annual pace of 2.8 percent.The inflation figures were in line with what economists had expected and underscored the Fed’s decision to proceed cautiously with interest rate cuts after making adjustments in the second half of last year. The interest rate set by the Fed stands at 4.25 percent to 4.5 percent.Spending fell 0.2 percent in January, led by a drop in spending on cars and other goods. Economists had expected a 0.2 percent increase overall, following a 0.8 percent increase in December. Once adjusted for inflation, spending dropped by 0.5 percentage points, which is the sharpest monthly drop in almost four years.Thomas Ryan, an economist at Capital Economics, attributed the decline in part to “unseasonably severe winter weather,” but warned that the Fed’s job will become “trickier if January’s sharp decline in consumption was a sign of consumer strength buckling.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Map: Where Medicaid Enrollment in the U.S. Is the Highest

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      <!–> [–><!–> –><!–> [–><!–>In eastern Louisiana, where Representative Julia Letlow, a Republican, was elected in 2024 by a wide margin, about one-third of the population is enrolled in the program.–><!–> –> <!–> [–> <!–> ]–> <!–> –><!–> [–><!–>And in California’s Central Valley, Republicans control a district where two-thirds of the population is on Medicaid, one […] More

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      What Can House Republicans Cut Instead of Medicaid? Not Much.

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      The math of the G.O.P.’s goals makes the move almost unavoidable.The House passed a budget resolution Tuesday night after the speaker, Mike Johnson, persuaded several Republican lawmakers, including those who have expressed reservations about possible Medicaid cuts, to support the bill.In theory, the budget, which kicks off the process of passing an extension of tax cuts enacted in 2017 and up to $2 trillion in spending cuts meant to partly offset them, could become law without significant cuts to Medicaid. But it won’t be easy. More

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      How the House Voted on the Budget Blueprint

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      The House voted 217 to 215 to approve a budget resolution, a key step toward passing much of President Trump’s legislative agenda. All but one Republican voted “yes.” Tuesday’s vote Total 217 0 217 215 214 1 Did not vote 1 1 0 The resolution, which will also need to pass the Senate to move […] More