https://www.npr.org/2023/05/01/1173148677/debt-ceiling-limit-default-standoff Accessibility links * Skip to main content * Keyboard shortcuts for audio player * Open Navigation Menu * NPR logo * * * NPR Shop * > Close Navigation Menu * Home * News Expand/collapse submenu for News + National + World + Politics + Business + Health + Science + Climate + Race * Culture Expand/collapse submenu for Culture + Books + Movies + Television + Pop Culture + Food + Art & Design + Performing Arts + Life Kit * Music Expand/collapse submenu for Music + Tiny Desk + #NowPlaying + All Songs Considered + Music Features + Live Sessions * Podcasts & Shows Expand/collapse submenu for Podcasts & Shows Daily + [morning-ed] Morning Edition + [we_otheren] Weekend Edition Saturday + [we_otheren] Weekend Edition Sunday + [all-things] All Things Considered + [fresh-air] Fresh Air + [up-first] Up First Featured + [takingcove] Taking Cover + [ltar_s2_ti] Louder Than A Riot + [ibam_tile-] It's Been a Minute + [life-kit_t] Life Kit + More Podcasts & Shows * Search * * NPR Shop * NPR Music NPR Music * Tiny Desk * #NowPlaying * All Songs Considered * Music Features * Live Sessions * About NPR * Diversity * Organization * Support * Careers * Connect * Press * Ethics U.S. could default on its debt by June 1, Janet Yellen warns Treasury Secretary Janet Yellen warned lawmakers that unless the debt ceiling is raised soon, the federal government may not have enough money to pay its bills as early as June 1. Politics The U.S. could run out of cash to pay its bills by June 1, Yellen warns Congress Updated May 1, 20236:24 PM ET Originally published May 1, 20235:31 PM ET Scott Horsley 2010 Scott Horsley [gettyimage] Enlarge this image Treasury Secretary Janet Yellen, seen here on April 13, warned on Monday that the federal government could default on its debt as early as June 1 unless Congress raises or suspends the debt ceiling. Stefani Reynolds/AFP via Getty Images hide caption toggle caption Stefani Reynolds/AFP via Getty Images Treasury Secretary Janet Yellen, seen here on April 13, warned on Monday that the federal government could default on its debt as early as June 1 unless Congress raises or suspends the debt ceiling. Stefani Reynolds/AFP via Getty Images Treasury Secretary Janet Yellen warned lawmakers Monday that the federal government could run short of money to pay its bills as early as June 1 unless the debt ceiling is raised soon. Yellen acknowledged the date is subject to change and could be weeks later than projected, given that forecasting government cash flows is difficult. But based on April tax receipts and current spending levels, she predicted the government could run short of cash by early June. "Given the current projections, it is imperative that Congress act as soon as possible to increase or suspend the debt limit in a way that provides longer-term certainty that the government will continue to make its payments," Yellen wrote in a letter to House Speaker Kevin McCarthy, R-Calif. The fight over the debt ceiling could sink the economy. This is how we got here Politics The fight over the debt ceiling could sink the economy. This is how we got here The warning provides a more urgent timetable for what has been a slow-motion political showdown in Washington. House Republicans are demanding deep spending cuts and other policy changes in exchange for raising the debt limit. President Biden has insisted he won't negotiate over the full faith and credit of the federal government. On Monday, President Biden invited McCarthy to a meeting at the White House on May 9 with Senate Majority Leader Chuck Schumer, D-N.Y., and House Minority Leader Hakeem Jeffries, D-N.Y., along with Senate Minority Leader Mitch McConnell, R-Ky. The government technically reached its debt limit in January, but Yellen said then that she could use emergency measures to buy time and allow the government to keep paying bills temporarily. Other forecasters have predicted those emergency measures will last through midsummer or beyond. But the first two weeks of June have long been considered a nail-biter, before an expected inflow of quarterly tax payments on June 15. Republicans hope McCarthy's bill gives him leverage in debt ceiling standoff Politics Republicans hope McCarthy's bill gives him leverage in debt ceiling standoff Yellen urged lawmakers not to take any chances. "We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States," she wrote. "If Congress fails to increase the debt limit, it would cause severe hardship to American families, harm our global leadership position, and raise questions about our ability to defend our national security interests," she added. * Treasury Secretary Janet Yellen * debt ceiling * federal debt * House Republicans * Facebook * Flipboard * Email Read & Listen * Home * News * Culture * Music * Podcasts & Shows Connect * Newsletters * Facebook * Instagram * Press * Contact & Help About NPR * Overview * Diversity * Accessibility * Ethics * Finances * Public Editor * Corrections Get Involved * Support Public Radio * Sponsor NPR * NPR Careers * NPR Shop * NPR Events * NPR Extra * Terms of Use * Privacy * Your Privacy Choices * Text Only * Sponsor Message Become an NPR sponsor