In a letter, Treasury Secretary Janet Yellen wrote that the new date the United States will run out of money is June 5.
“Based on the most recent data available, we now estimate that the Treasury will not have sufficient resources to meet the government’s obligations if Congress does not raise or suspend the debt ceiling by the 5 June,” Yellen wrote to congressional leaders.
The letter comes as Republican White House and White House negotiators have yet to reach an agreement. That gives the negotiating teams a modest reprieve as they remain stuck on several issues in the talks, including work requirements and how to manage federal spending in the years ahead.
The good news for the country is that it has more time to do something. The bad news for the country is that the new date gives Kevin McCarthy and House Republicans, many of whom believe the default date is made up and fake, more time to mess things up and destroy the US economy.
Note that the White House is not negotiating the debt limit with Republicans, but they are trying to reach a spending deal. Kevin McCarthy and his collection of the world’s dumbest supervillains are on their own planet where they think they can force Biden to agree to their spending cut demands, but that’s not going to happen.
The June 5 date is significant in real terms because Americans who rely on Social Security will receive their June checks, saving them the nightmare of suddenly having bills to pay and no income.
No one should feel comfortable in this situation, but having a few more days, even with Kevin McCarthy involved, is better than having less.
Jason is the editor. He is also a member of the White House press pool and a congressional correspondent for PoliticusUSA. Jason holds a bachelor’s degree in political science. His graduate studies focused on public policy, with a specialization in social reform movements.
Awards and Professional Memberships
Member of the Society of Professional Journalists and the American Political Science Association