The United States without money if the debt ceiling is not raised – Escambray

White House negotiators and their congressional counterparts have been brainstorming for weeks to work out major points of contention.

Treasury Secretary Janet Yellen has warned Congress that the United States will run out of money before June 5 if it does not increase the debt limit, press highlights today.

“Based on the most recent available data, we now estimate that the Treasury Department will not have sufficient resources to meet government obligations if Congress does not raise or suspend the debt limit by June 5th,” Yellen said.

This update gives negotiators a bit more leeway, as the previously set deadline was June 1, notes The Hill, but the latter date appears to be final.

Republican Representative Garrett Graves, a key player in the talks, said proposed changes to work requirements for some federal aid programs remained a “major sticking point.”

He also indicated that more work needs to be done before the two parties reach an agreement on spending limits.

Republicans are pushing for stricter requirements for programs like Medicaid, the Supplemental Nutrition Assistance Program and Temporary Assistance for Families in Need, changes many Democrats see as impossible.

The White House responded positively to Yellen’s remarks, agreeing to stress the “urgent need” for an agreement.

White House negotiators and their congressional counterparts have been brainstorming for weeks to work out major points of contention.

Hill notes that both sides have had difficulty reaching agreement on defense and non-defense spending.

Friday night, top Democrats and Republicans sent strong signals that they were getting closer to a deal.

While both sides said it was too early to announce an agreement, both sides expressed confidence that they were close to reaching a compromise to raise the government’s debt ceiling while taking steps to curb deficit spending.

If the debt ceiling is not raised from the current limit of 31.4 trillion (million million), the country could suspend Social Security payments and the salaries of its federal employees, in addition to the havoc it would cause in the global economy, affecting mortgage prices and rates in countries, analysts say. other.

(With info from Prensa Latina)