It’s coming down to the wire for Congress to reach a deal on the national debt ceiling before the U.S. government runs out of money to pay its bills.
Treasury Secretary Janet Yellen warned lawmakers that they have until Thursday to resolve the debt limit. Otherwise, the Treasury will have to pay its bills late and the United States could default on its debt – something that has never happened.
What’s more, it could be the final blow that puts the fragile economy in a recession, Yellen said in a letter last week.
Lawmakers are at odds over raising the federal borrowing limit, or the debt ceiling, which allows the U.S. government to make good on its financial obligations. That ceiling, or the amount the government can borrow, stands at $31.4 trillion.
The national debt, the amount the government owes its creditors, was hovering slightly above that as of Wednesday afternoon.
Lawmakers squabble as nation nears limit:What happens if the US hits the debt ceiling?
Debt ceiling explainer:U.S. Treasury Department to take ‘extraordinary measures’ as government nears debt ceiling
The Treasury Department can meet certain financial obligations using what Yellen referred to as “extraordinary measures” through June, The Bipartisan Policy Center estimates.
But there are several programs that would be jeopardized if the debt ceiling isn’t raised and other measures are exhausted.
Here is what’s at stake:
Social Security, Medicare and Medicaid
Social Security could be impacted…
