


Financial officers are concerned about the plan moving forward should the United States fail to reach a deal on the debt ceiling as the “X-date” approaches.
Reaching out from 20 different states, financial experts pressured Treasury Secretary Janet Yellen for a clear plan if congressional leaders fail to raise or suspend the debt limit.
BIDEN WORKS TO PUSH DEBT CEILING DEAL OVER THE FINISH LINE
Twenty-two financial officers asked Yellen to provide a “detailed explanation for the date the department expects to cease extraordinary measures.”
“As state financial officers, not only are we investors in and holders of federal debt, but we are also responsible for safeguarding the adequacy of state funds to ensure the ability to provide necessary public services without interruption,” the officers wrote in a letter obtained by the Hill.
The letter was issued on the day the House is poised to vote on President Joe Biden and House Speaker Kevin McCarthy's (R-CA) plan to suspend the nation’s debt limit through Jan. 1, 2025.
“The administration’s public comments have implied that past this date there are only two alternatives — an extension of the debt ceiling or a default on the nation’s debt,” the letter says.
The financial experts communicated that suspending or breaching the debt ceiling are both “false choice[s].”
“In the event you are unable to meet all of the government’s spending obligations, there are a number of options before you with respect to prioritization of payments,” the letter states.
Yellen set the date for when the U.S. would not have enough funds to pay its debts on time, previously declaring June 1 as the deadline before recommending the new estimate as June 5 last week.
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"Based on the most recent available data, we now estimate that Treasury will have insufficient resources to satisfy the government's obligations if Congress has not raised or suspended the debt limit by June 5," Yellen wrote in a letter to McCarthy on May 26.
While the Rules Committee advanced the plan to the floor Tuesday night, a growing number of Republicans have opposed the bill preventing the nation’s first-ever default, pressuring McCarthy to rack up Democratic votes.