On May 1, 2023, the United States Treasury, Janet Yellen warns the us that without a debt limit increase the US could run short of cash to pay all of its bills as soon as June 1. A fiscal fight between congressional Republicans, Democrats, and the White House is currently underway. According to the Nypost, Treasure Secretary Janet Yellen said in a letter given to Congress that the government would be very unlikely to meet all government payments, “by early June, and potentially as early as June 1” without Congress taking action.

Janet claims that it’s hard to measure with certainty when this event could happen. However, she will continue to update Congress in the upcoming weeks as more information will become available. On Thursday, January 19, the United States hit the set $31.4 trillion borrowing cap. While Janet previously told Congress that the Treasury would “keep up payments” on debt, it seems that their word was not kept.

A similar debt cap fight happen in 2011 causing a downgrade of the country’s credit rating, and veterans of the 2011 face-off say that negotiations may be more difficult this time around. The Republican-led Congress House passed a bill that would exchange $4.5 trillion in spending cuts for a $1.5 trillion increase in the debt limit. Things in this cut include deep cuts to healthcare for the poor, shutting down hundreds of air traffic control towers, and it would also slash the tax incentives for solar and other climate-friendly energy sources.

The White House has asked Congress to raise the debt limit without conditions, and officials are planning to negotiate with Republicans over the president’s 2024 budget plan.