If US defaults on its debt, Treasury would have to decide how to pay the bills | CNN Politics

As the date that the US could default on its obligations grows closer, the Treasury Department must prepare for an unprecedented situation – figuring out which bills to pay with the money it has on hand if Congress doesn’t act. One option that Treasury officials have seriously contemplated in past debt ceiling dramas is prioritizing payments, which would entail satisfying certain bills before others.

” Still, it’s one of many options Treasury could be looking at in hopes of maintaining the safety and soundness of US securities, though no Treasury secretary would consider prioritization a responsible solution, he said. Yellen told lawmakers that she cannot assure that the idea is feasible, adding there’s a reason why Treasury secretaries of both parties have rejected prioritization in the past.

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