On Monday, Yellen told congressional leaders her latest "best estimate" is that could happen by June 1, though it could also be "a number of weeks later." She said she will continue to update Congress as more information becomes available.īut she called it "imperative that Congress act as soon as possible to increase or suspend the debt limit in a way that provides longer-term certainty that the government will continue to make its payments."
Officials initially said they might run out of options by early June.
The amount the government can borrow is currently capped at $31.4 trillion.Īfter hitting that limit in January, the Treasury Department has been using "extraordinary measures" to pay its bills. "We pay our bills, and we should do so without reckless hostage-taking from some of the MAGA Republicans in Congress," Biden said Monday. "It's time now for the president to get in this game."īiden insists future spending decisions be negotiated separately – and the debt limit be increased without conditions as it has been under past presidents, including Donald Trump. "We passed a bill to address the problem," House Majority Leader Steve Scalise, R-La., said on ABC's "This Week with George Stephanopolous" Sunday. McCarthy's proposal would curtail spending growth and impose policy changes that include eliminating Biden's student loan forgiveness plan and adding new work requirements for some people who receive food assistance and health coverage. House Republicans insist they won't raise the borrowing limit unless Democrats agree to spending cuts. The Biden administration and the GOP-controlled House have been in a standoff over the impending deadline. Maintaining his position that the debt limit be raised without conditions, Biden will stress the urgency of acting as well as discuss how the White House can deal separately with House Republicans on future spending decisions, according to a White House official. WASHINGTON – President Joe Biden on Monday summoned House Speaker Kevin McCarthy and other congressional leaders to the White House for urgent talks next week on avoiding a default on the nation’s debt.īiden’s call to McCarthy, who is traveling in Israel, came about an hour after Treasury Secretary Janet Yellen warned the federal government may not be able to pay its bills as soon as June 1.īiden has been under pressure to talk to McCarthy after House Republicans passed a bill to raise the debt limit while cutting spending.
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