The United States has hit the debt ceiling, or the maximum amount of money it’s allowed to borrow to pay its bills. The debt ceiling is currently set at nearly $31.4 trillion.
In a letter to congressional leaders, Treasury Secretary Janet Yellen said she is now taking extraordinary measures to keep the United States from defaulting. That includes pausing investments in the Civil Service Retirement and Disability Fund and the Postal Service Retiree Benefits Fund. She will also redeem a portion of the investments already held by those accounts. By law, both funds will be made whole once the debt limit is increased, and Yellen said no federal retirees or employees will be affected by her actions.
“The period of time that extraordinary measures may last is subject to considerable uncertainty, including the challenges of forecasting the payments and receipts of the U.S. Government months into the future,” Yellen wrote. “I respectfully urge Congress to act promptly to protect the full faith and credit of the United States.”
House Republicans and the White House have not made any tangible progress on increasing the limit. The White House said it will not negotiate.
“It is essential for Congress to recognize that dealing with the debt ceiling is their constitutional responsibility. This is an easy one. This is something that should be happening without conditions,” Press Secretary Karine Jean-Pierre said.
But Republicans argue that debt increases should be met with spending decreases.
“Find the compromise, and find the common sense compromise that puts us back on to a balanced budget that I believe every household, every state does this, every county,” House Speaker Kevin McCarthy, R-Calif., said.
Here’s a look at America’s finances for fiscal year 2023 that started in October:
Revenue: $1.03 trillion
Expenditures: $1.45 trillion
Deficit: $421 billion
This year’s deficit is $44 billion, or 12%, more than it was at the same time last year.
