On Thursday, the United States reached its $31.38 trillion debt ceiling, prompting the Treasury Department to take “extraordinary steps” to prevent bond default. In a letter to members of Congressional leadership on Thursday, Treasury Secretary Janet Yellen explained how the United States had surpassed the debt ceiling.
According to Yellen, the Treasury Department won’t be able to meet the obligations of some assets, like the Civil Service Retirement and Disability Fund. A “debt issuance suspension period” was put in place by her from Thursday until June 5.
The duration of exceptional measures is “subject to substantial uncertainty,” according to Yellen. “I sincerely encourage Congress to take swift action to preserve the United States’ full faith and credit.”
When both chambers were controlled by Democrats in December 2021, Congress last raised the debt ceiling. Republicans who oppose lifting the debt ceiling include Rep. Matt Rosendale of Montana.
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On Wednesday, House Speaker Kevin McCarthy (R-Calif.) retweeted tweets from his fellow Republicans urging lawmakers to cut spending and cooperate with Democrats to do it. Democrats were chastised by Rep. Nicole Malliotakis (R-NY) for not lifting the debt ceiling while they were in charge.
“Democrats shouldn’t have waited until now to confront the debt ceiling if they don’t want to bargain with the @HouseGOP. Without our consent, they easily passed another huge spending omnibus in December. They now want to hold Republicans accountable for the debt ceiling issue they brought about.” Tweeted she.
Karine Jean-Pierre, the press secretary for the White House, stated on Wednesday: “There should not be any negotiations in this area, we’ve made it very clear. Dealing with the debt ceiling shouldn’t be something we avoid. We have been very explicit here.”
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