“Based on updated projections, there is a scenario in which we run of out cash in early September, before Congress reconvenes,” Mnuchin wrote in a letter.
Pelosi and Mnuchin have spoken three times this week in an effort to jumpstart stalled budget and debt ceiling negotiations, and multiple sources say the new default projections have provided an accelerant for those efforts.
Mnuchin and Pelosi are likely to speak again Friday. Pelosi told reporters that she has not yet read Mnuchin’s letter to Capitol Hill but she knew it was coming.
In his letter, Mnuchin called on Congress to restore borrowing power by increasing the debt ceiling before Congress departs for its regular August recess.