CBO: U.S. Government, Running on Fumes Since March, Could Run Out of Cash by Mid-October

The Treasury Department has been using cash-conservation measures to continue meeting the government's obligations since mid-March, when federal debt hit Congress's self-imposed limit at nearly $20 trillion. Treasury Secretary Steven Mnuchin has implored lawmakers to raise the debt ceiling, with no conditions attached, before they leave for a five-week summer recess July 28.

Mr. Mnuchin said earlier this month Treasury could continue to pay the government's bills through the beginning of September, but declined to give a more specific date for when Treasury expects to exhaust its so-called extraordinary measures.

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In a separate report issued Thursday, CBO said weaker tax collections this year have led it to increase the projected budget shortfall for 2017.

CBO now expects the deficit to rise to $693 billion in the fiscal year ending Sept. 30, or 3.6% of gross domestic product, from $587 billion, or 3.2%, in 2016. That was higher than estimates released in January, when CBO projected the deficit would decline in 2017 to $559 billion, or 2.9% of GDP.