In this Jan. 29, 2020, file photo the Capitol is seen amid reflections of the Russell Senate Office Building in Washington. On Wednesday, Feb. 12, the Treasury Department releases federal budget data for January. (AP Photo/J. Scott Applewhite, File)
By Martin Crutsinger
The Treasury Department said Monday it will need to borrow a record $2.99 trillion during the current April-June quarter to cover the cost of the government's various pandemic rescue efforts.
This quarter's borrowing will far surpass the Treasury's previous record, $569 billion in October-December 2008 when the government was dealing with the shock waves from that year's financial crisis.
This quarter's extraordinary sum also dwarfs the $1.28 trillion the government borrowed in the bond market for all of 2019.
Treasury said the borrowing is needed to fund the nearly $3 trillion the government has approved for supporting workers and businesses with direct economic payments, the Paycheck Protection Program and other efforts.
In addition, the government needs to borrow to cover the shortfall in revenue that will occur because the Trump administration has delayed the deadline for tax payments this year from April to June.
“Borrowing needs are skyrocketing as Treasury needs cash to fund stimulus measures and to compensate for a plunge in revenues caused by massive job losses,” said Nancy Vanden Houten, an economist at Oxford Economics.
In a stark demonstration of how the government’s financial situation has changed, three months ago before the virus caused widespread shutdowns in the United States, Treasury was projecting that it would be able to pay down $56 billion in debt during the quarter.
Treasury also projected that it will have to borrow an additional $677 billion in the July-September quarter.
The Congressional Budget Office is forecasting that the government will run a record budget deficit of $3.7 trillion this year. CBO is projecting the overall economy will shrink by a record 40% at an annual rate in the current April-June quarter.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
