Skip to main content

Listen

Read

Watch

Schedules

Programs

Events

Give

Account

Donation Heart Ribbon

Study: US Could Default As Early As Oct. 18

WASHINGTON (AP) — A new study predicts the United States could default on its obligations as early as Oct. 18 if Washington fails to agree on legislation to raise the government's borrowing cap.

Photo by Alex Wong

The U.S. Capitol dome.

The Bipartisan Policy Center analysis says the default date would come no later than Nov. 5 and that the government would quickly fall behind on its payments, including those for Social Security benefits and military pensions.

The think tank's estimate is in line with a warning last month by Treasury Secretary Jacob Lew that the government would exhaust its borrowing authority by mid-October and be left with just $50 billion cash on hand.

The government has never defaulted on its obligations. Raising the $16.7 trillion borrowing cap promises to be a major struggle for House Republicans and President Barack Obama.

Want more KPBS news?
Find us on Twitter and Facebook, or subscribe to our newsletters.

To view PDF documents, Download Acrobat Reader.