Treasury Secretary Yellen warns U.S. must raise debt ceiling by June 1 or risk default

Treasury Secretary Janet Yellen on Monday warned Congress that they must approve a deal to raise the debt ceiling by June 1 or risk a national default.

The U.S. hit its $31.38 trillion spending limit in January of this year, prompting Yellen to implement "extraordinary measures" in order to keep the government operating.

She had previously indicated that the government was prepared to keep paying its expenses into early June, but her Monday warning accelerated the timetable to avert a default, The Hill reported.

Yellen informed House Speaker Kevin McCarthy that the Treasury "will be unable to continue to satisfy all of the government’s obligations... [in] early June, and potentially as early as June 1, if Congress does not raise or suspend the debt limit before that time," per CNBC.

While Democrats have sought a clean increase to the debt limit with no strings attached, Republicans have worked to extract spending concessions from the Biden administration as a precondition for raising it.

The House of Representatives last week passed a GOP-crafted plan to extend the debt limit by one year and cap increases to domestic spending, though would also have to clear the Democrat-majority Senate.

"House Republicans just delivered a plan that will address the country’s debt crisis," McCarthy said of the package. "Our conference came together to pass the only plan in Washington that will tackle the debt ceiling, stop excessive federal spending and inflation, and put our country back on track for sustained economic growth."

President Joe Biden has announced that he will veto the legislation should it manage to reach his desk and remains unwilling to negotiate with McCarthy.

"The president has been clear that he will not accept such attempts at hostage-taking. House Republicans must take default off the table and address the debt limit without demands and conditions, just as the Congress did three times during the prior administration," the Office of Management and Budget insisted in late April.

McCarthy and Biden have not met in person to discuss the issue since Feb. 1.

Ben Whedon is an editor and reporter for Just the News. Follow him on Twitter.