U.S. Treasury Secretary Janet Yellen on Tuesday said that she now estimates the U.S. government to hit its debt ceiling on Dec. 15, two weeks later than her initial estimate of Dec. 3.
In a letter to Congress, Yellen said that the Treasury will be able to transfer $118 billion to the Highway Trust Fund by Dec. 15 after U.S. President Joe Biden signed a $1 trillion infrastructure plan on Monday.
While confident that the highway project could still be funded, Yellen said that “there are scenarios in which Treasury would be left with insufficient remaining resources to continue to finance the operations of the U.S. government beyond this date.”
Yellen urged Congress to lift the debt limit as soon as possible “to ensure the full faith and credit of the United States”.
If the debt limit is not suspended before the given deadline, the U.S. government would default on its public debt, which currently stands at $28.8 trillion, for the first time ever.
However, Congress is still in a standoff with the debt debate. Senate Minority Leader Mitch McConnell, R-Ky., warned last month that Republican senators will not work with Democrats on “any future effort to mitigate the consequences of Democratic mismanagement.”
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