US Will Hit Debt Limit Next Week, Treasury Secretary Warns Congress
Summary from the AllSides News Team
Treasury Secretary Janet Yellen sent a letter to four congressional leaders on Friday, warning them that the government is expected to reach its debt limit on Thursday. Should this happen without the limit being raised, the Treasury Department will enact “extraordinary measures” to prevent a debt default.
For Context: The current debt limit is $31.4 trillion. The last time the debt ceiling was raised was 2021. With a now-divided congress, and House Republicans renewing calls to rein in government spending, outlets across the spectrum are anticipating a political showdown over raising the debt limit and permitting more borrowing.
Key Quotes: In her letter, Yellen stated, “failure to meet the government’s obligations would cause irreparable harm to the U.S. economy, the livelihoods of all Americans, and global financial stability.” While the Department’s cost-cutting measures can pay the bills until the summer, Yellen called for a swift resolution, warning that even “threats that the U.S. government might fail to meet its obligations” could cause global financial panic.
How The Media Covered It: An article from the Associated Press warned of potential consequences of a debt default and framed House Republicans as obstructionists, stating that in order to find a “compromise,” Biden may be forced to deprioritize “programs for children and the poor.” Fox News’s coverage echoed fears and dangers of defaulting, ending the article by quoting Speaker of the House Kevin McCarthy (R-CA) voicing optimism that a bipartisan agreement would be reached.
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From the Center
Yellen says US is projected to hit debt ceiling on Jan. 19
Treasury Secretary Janet Yellen said the U.S. is projected to reach its roughly $31.4 trillion borrowing limit in less than a week.
Yellen shared the estimate in a letter to Speaker Kevin McCarthy (R-Calif.) on Friday. She also warned the department would soon have to begin taking “extraordinary measures” to stave off a default to buy time for Congress to find a bipartisan solution.
Those measures include temporarily redeeming existing and suspending new investments of the Civil Service, Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund, as...
From the Right
Yellen warns that US will hit debt limit next week
Treasury Secretary Janet Yellen on Friday warned the U.S. will hit its debt limit on Jan. 19 and that unless Congress takes swift action, the government could be unable to pay its bills as early as June.
In a letter addressed to the big four congressional leaders, Yellen said the Treasury Department will begin deploying so-called extraordinary measures to prevent the U.S. from defaulting on its obligation.
The emergency moves should give Congress until at least early June to raise or suspend the country's current $31.4 trillion borrowing limit,...
From the Left
Yellen tells Congress US expected to hit debt limit Thursday
Treasury Secretary Janet Yellen notified Congress on Friday that the U.S. is projected to reach its debt limit on Thursday and will then resort to “extraordinary measures” to avoid default.
In a letter to House and Senate leaders, Yellen said her actions will buy time until Congress can pass legislation that will either raise the nation’s $31.4 trillion borrowing authority or suspend it again for a period of time— but said it’s “critical that Congress act in a timely manner.”
“Failure to meet the government’s obligations would cause irreparable harm...
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