The US Treasury is now paying off the government's bills because Congress missed an important deadli
The Treasury Department took initial steps to start paying off the federal government's bills on Monday because Congress missed a July 30 deadline to either raise or suspend the debt ceiling.
In a letter to Congressional leaders, Treasury Secretary Janet Yellen said she's starting what are known as "extraordinary measures" to keep the federal government afloat. She urged lawmakers to take swift action to either raise or suspend the debt ceiling, which hit its statutory limit on August 1.
"I respectfully urge Congress to protect the full faith and credit of the United States by acting as soon as possible," Yellen said in the letter. The nonpartisan Congressional Budget Office said in an analysis that Treasury would exhaust its special powers sometime in September or October. Absent action from Congress, the US would then default on its loans.
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Congress last suspended the debt ceiling for two years under President Donald Trump in July 2019. But now, many Republicans are balking at raising the debt limit without ensuring spending cuts from Democrats, as they similarly did when they controlled Congress under President Barack Obama. Senate Minority Leader Mitch McConnell suggested last month Democrats would have to raise the debt ceiling on their own.
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