No Money, Mo’ Problems? Treasury Secretary Warns U.S. Could Run Out of Money By June 1

Treasury Secretary Janet Yellen is warning that the United States may not be able to pay its bills if it raises or suspends the debt limit.

CBS News reports the U.S. government won’t be able to pay their bills as early as June 1, if they don’t come to a decision and make a move.

Republican lawmakers and the Biden administration don’t seem to be anywhere near making a deal on debt resolution, something they’ve been sparring about since the beginning of the year. However, Yellen’s warning should hopefully push some buttons.

“After reviewing recent federal tax receipts, our best estimate is that we will be unable to continue to satisfy all of the government’s obligations by early June, and potentially as early as June 1,…” Yellen wrote in a letter.

According to the New York Times, House Republicans passed legislation in April that would raise the debt limit in exchange for spending cuts and rolling back on recent climate legislation passed by Democrats.

Biden wasn’t too happy about it, claiming the bill would hurt more American families, especially those in the oil and gas industry. “For over 200 years, America has never, ever, ever failed to pay its debt. To put in the capital—in colloquial terms, America is not a deadbeat nation. We have never, ever failed to meet the debt,” Biden said.

The Congressional Budget Office has also said the Treasury Department is at “a significantly greater risk” of running out of money since tax receipts were lower than anticipated in February. Some Republican leaders responded to Yellen’s letter blaming Biden. Senator Joni Ernst of Iowa said times like these are “scary” and “President Biden needs to step it up and get to the table. Kevin McCarthy and the folks in the House, they did their part,” Ernst said.

Others are looking forward to the challenge and are optimistic about what good teamwork can do. “Washington’s at its best when it has a deadline to respond to,” North Carolina Senator Thom Tillis commented.