US Treasury's Cash Reserves Reach Critical Low Amid Debt Ceiling Impasse

The US federal government's cash balance has dropped to $57.3 billion, the lowest since December 2021, as lawmakers have yet to resolve the debt ceiling crisis. The Treasury General Account is used to pay for debt service on government bonds, among other outlays like entitlements and federal employee salaries. The government has spent $3.6 trillion so far this fiscal year, and last fiscal year, it spent $6.3 trillion in total. The sudden drawdown this week raises the risk that the Treasury Department may not have enough to last until more tax payments come in starting on June 15, setting up a potential default. Lawmakers remain at odds on lifting the debt ceiling, and negotiations hit a new impasse on Friday.