Democrats and Republicans can’t agree on raising the debt ceiling yet.
Funds in the U.S. federal budget may run out by December 15, Treasury Secretary Janet Yellen warned in a letter on Tuesday, urging lawmakers to raise the debt limit to avoid the risk of default.
Democrats and Republicans in Congress have been unable to agree with each other in recent months on raising the legislative limit on the size of the debt ceiling of the United States.
In October, lawmakers agreed to a temporary increase in the debt limit by $480 billion, which, according to Yellen, will allow the government to work until December 3.
In a letter to the Speaker of the House of Representatives Nancy Pelosi, the Finance Minister announced her forecast as to when the deadline will be reached – according to her; the country will have 12 more days left after December 3. However, she warned of scenarios “in which the Treasury will have insufficient resources to continue financing the activities of the U.S. government after this date.”
“It is extremely important that Congress raise the debt limit as soon as possible or suspend the limit on its growth,” Yellen wrote.
The last time the contradictions between Democrats and Republicans occurred in the midst of lengthy negotiations over Biden’s plan to “Restore better than it was,” which provides for investments of $ 1.85 trillion in American social services and education.
The Republican minority in Congress opposes this measure and says it will not agree to an increase in the debt ceiling to pay for financing the Biden plan, although the U.S. government will spend most of the debt on expenses approved by previous administrations of Democrats and Republicans.
The United States has never defaulted on its debts, and U.S. Treasury bonds play an important role in the global financial system. Economists warn that failure to raise the debt ceiling will lead to a large-scale financial crisis.