The US Treasury warned of budget exhaustion due to exceeding the national debt limit

The US government may be left without funds to pay off payments by June 1 if Congress does not increase or suspend the national debt limit. Treasury Secretary Janet Yellen said: transmits The New York Times (NYT).

“Given the current outlook, it is critical that Congress increase or suspend the debt limit as soon as possible to provide long-term assurance that the government will continue to make payments,” she said.

According to the NYT, after Yellen’s statement, US President Joe Biden called four leaders in Congress and scheduled a meeting to discuss financial issues on May 9.

If the issue with the limit is not resolved, the US will face default on the debt. The newspaper, citing a representative of the US Treasury, clarifies that as of April 30, Washington had cash in the amount of about $ 300 billion.

This is not the first time the US has reached the national debt limit. In December 2021, Biden raised the limit by $2.5 trillion to $31.4 trillion. However, already in January 2023, the limit was reached again.

In this regard, at the end of April, the US House of Representatives approved raising the debt ceiling by $1.5 trillion to $32.9 trillion. The bill contains measures to reduce public spending to the level of 2022, eliminate some tax breaks for renewable energy sources, tighten requirements for receiving medical benefits, etc. It is supported by the Republican majority in the House of Representatives.

At the same time, the bill is strongly opposed by the Democratic-controlled Senate and Joe Biden. Earlier, the US President said that the threat of default on public debt is excluded. The NYT notes that Biden is not going to discuss capping the limit and insists on raising the limit “without any conditions.”