So, is this for the best? What do you think of all the laws that are in place regarding the Treasury’s on hand cash? Did you even know there were so many regulations?
By Pete Kasperowicz
The Treasury Department has been rapidly spending its large cash reserves ever since President Trump took office, a move that complies with federal law, but could also make it harder for the government to stay under the debt ceiling once the limit kicks in again later this month.
On Jan. 20, the day Trump took office, the federal government had $382 billion in cash on hand. As of Thursday, that was down to about $109 billion.
Spending all that cash has helped keep the total national debt under $20 trillion. The total debt has hovered around $19.9 trillion since Trump took office, and would easily exceed $20 trillion by now if the government borrowed money to fund government spending instead of using available cash.
But staying under the dubious milestone is probably not why all that cash is going out the door. Tyler Evilsizer of the Committee for a Responsible Federal Budget told the Washington Examiner there’s another reason: keeping a low cash balance is required under a law that was passed in 2015.
“The last debt ceiling legislation prohibited Treasury from increasing the cash balance above normal operating balances right before the debt ceiling returns,” he said.