US Hits Debt Limit as Treasury Begins 'Extraordinary Measures'
Summary from the AllSides News Team
The U.S. officially hit its $31.4 trillion debt limit on Thursday.
The Details: Treasury Secretary Janet Yellen wrote a letter to House Speaker Kevin McCarthy (R) Thursday, informing him that the nation’s debt hit its limit and that the agency will implement "extraordinary measures" to avoid a default. Yellen said the measures would expire on June 5, giving Congress and President Joe Biden several months to reach an agreement on raising the debt ceiling.
Key Quotes: The measures are "subject to considerable uncertainty, including the challenges of forecasting the payments and receipts of the U.S. Government months into the future," Yellen wrote. "I respectfully urge Congress to act promptly to protect the full faith and credit of the United States." Earlier this week, McCarthy voiced opposition to raising the debt limit without conditions, questioning why we wouldn't "sit down and change this behavior so that we would put ourselves in a more fiscally strong position?"
For Context: Imposed by Congress, the debt ceiling is a limit on the debt that the government can borrow on behalf of the public, including Social Security benefits and tax refunds. It was raised 22 times from 1997 to 2022, according to the Government Accountability Office (Center bias). And at roughly $31.4 trillion, U.S. national debt is at an all-time high.
How the Media Covered It: The debt was a top story across the political spectrum Thursday morning, with many highlighting Yellen's "extraordinary measures" comment.
Featured Coverage of this Story
From the Center
Yellen says Treasury is taking extraordinary measures to avoid default as U.S. hits debt limit
The Treasury Department started taking so-called extraordinary measures to keep paying the federal government’s bills as the U.S. hit its debt limit Thursday, Treasury Secretary Janet Yellen said.
In a letter addressed to House Speaker Kevin McCarthy, R-Calif., Yellen said the Treasury will suspend new investments in the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund from Thursday until June 5, 2023. But she warned both moves are subject to “considerable uncertainty” if Congress does not pass a bill to increase the $31.4 trillion debt ceiling....
From the Left
US hits debt ceiling, prompting Treasury to take extraordinary measures
The US hit the debt ceiling set by Congress on Thursday, forcing the Treasury Department to start taking extraordinary measures to keep the government paying its bills and escalating pressure on Capitol Hill to avoid a catastrophic default.
The battle lines for the high-stakes fight have already been set. Hardline Republicans, who have enormous sway in the House because of the party’s slim majority, have demanded that lifting the borrowing cap be tied to spending reductions. The White House countered that it will not offer any concessions or negotiate on raising the debt...
From the Right
US hits debt ceiling, threatening economic outlook
The U.S. hit its debt limit on Thursday, forcing the Treasury Department to begin deploying a series of emergency moves so that the government can continue to pay its bills.
In a letter to Congress, Treasury Secretary Janet Yellen said the department will start using so-called "extraordinary measures" to prevent the U.S. from defaulting on its obligation.
"The period of time that extraordinary measures may last is subject to considerable uncertainty, including the challenges of forecasting the payments and receipts of the U.S. Government months into the future," Yellen...
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