US President Joe Biden on Monday invited the four most prominent leaders in Congress to participate in a meeting at the White House next week, after the Treasury Department warned that the available cash may not be enough to pay the government’s obligations by June.
This prompted Biden to call a meeting with leaders, including Republican House Speaker Kevin McCarthy, on May 9.
Treasury Secretary Janet Yellen said in a letter to Congress that it was unlikely that the department would meet all of the US government’s commitments “in early June, possibly as early as June 1” if Congress did not act.
Biden invited McCarthy, House Democratic Leader Hakeem Jefferies, Senate Majority Leader Chuck Schumer and Republican Leader Mitch McConnell to the meeting.
House Republicans passed a bill to raise the debt ceiling last week that includes sharp spending cuts, which Biden and the Democratic-controlled Senate have said they will not agree to.
Failure to act before the new Treasury Department deadline of June 1 could force the United States to default on some obligations on an unprecedented scale.
Biden insists that he will not negotiate raising the debt ceiling, but will discuss budget cuts after the approval of a new ceiling.
Congress usually links raising the debt ceiling to other budget and spending measures.
After hitting the government debt ceiling of $31.4 trillion on Jan. 19, Yellen told Congress that the Treasury Department will continue to pay liabilities through extraordinary cash management measures.
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2023-05-02 01:58:20
