The nation could hit its statutory debt limit earlier than expected and maybe as soon as June 1, Treasury Secretary Janet Yellen wrote Monday in a letter to Congress, as CNBC and other outlets reported. The U.S. would be unable to pay its existing debts.
President Biden has called a May 9 White House meeting with the most senior Congressional leaders – Senate Majority Leader Chuck Schumer (D-N.Y.) and Minority Leader Mitch McConnell (R-Ky.), and House Speaker Kevin McCarthy (R-Calif.) and Democratic Leader Hakeem Jeffries (D-N.Y.).
The debt limit is the level of money the U.S. is statutorily allowed to borrow. The nation is approaching the level because of spending that has already been approved by Congress and the President.
The Republican-led House passed a bill last week – as On Base reported – that would raise the debt limit but only when coupled with deep spending cuts. That has, so far, been a non-starter for the White House and the Democratic-led Senate.
Air National Guard photo by Staff Sgt. Sean Campbell