According to its report, the federal government will receive about $172 billion and have bills totaling about $307 billion in August. This leaves a shortfall of about $135 billion.
To keep from defaulting on our nation's debt obligations, the Treasury Department would first need to pay the interest on the treasury bills due in August, which will be about $29 billion. Since there will be $172 billion in revenue in August, there will be more than enough money to pay the nation's debt obligations and there will not be a default.
Jay Powell, who served as Under Secretary of the Treasury under George H. W. Bush and is a Visiting Scholar at the Bipartisan Policy Center, made this point in an interview on The Newshour.
“There's always going to be enough money to pay the interest on the debt, and it's very unlikely that there will be an actual debt default,” said Powell.
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