(Townhall) The week after the U.S. House of Representatives passed the Limit, Save, Grow Act to raise the debt ceiling to avoid default and cap discretionary spending at FY2022 levels crafted by congressional Democrats and signed by President Joe Biden, Treasury Secretary Janet Yellen issued a new warning.
In a letter to House Speaker Kevin McCarthy (R-CA) — who already ensured the House did its part in passing the Limit, Save, Grow Act while President Joe Biden’s refusal to negotiated passed the two-month mark and Democrat Senate Majority Leader Chuck Schumer failed to put forward a counteroffer — Yellen said that the U.S. would be unable to “satisfy all of the government’s obligations…as early as June 1.” Previously, Yellen said the “extraordinary measures” she began to avoid default at the start of the new year would last until “early June.”
Biden’s Treasury secretary also said that a new measure was being taken to try extending the timeline before the U.S. can’t meet its obligations: suspending the issuance of State and Local Government Series (SLGS) Treasury securities…special-purpose Treasury securities issued to states and municipalities to help them comply with certain tax rules.” Yellen says Treasury’s latest action “will deprive state and local governments of an important tool to manage their finances.”
Here’s more from Yellen’s letter:
