Treasury Secretary Janet Yellen Announces U.S. Will Run Out of Money to Meet Its Obligations on June 5, 2023 Without Debt Limit Increase or Suspension

The United States Treasury Secretary Janet Yellen announced on Friday that the U.S. will run out of money to meet its obligations on June 5, 2023, if Congress does not raise or suspend the debt limit. This gives President Joe Biden and Republican lawmakers more time to reach an agreement on a budget deal.

Yellen wrote in a letter addressed to House Speaker Kevin McCarthy (R-Calif.) that the Treasury Department’s estimate is based on the most recent available data. The letter also stated that if Congress has not raised or suspended the debt limit by June 5, the government will not have sufficient resources to satisfy its obligations.

The House Freedom Caucus, a group of MAGA-infused Republicans, responded to Yellen’s announcement by demanding that McCarthy make Yellen “show her math” on how she arrived at June 1 as the earliest date of a potential default. The Caucus members wrote in a letter to McCarthy that they urge him to lead Republicans in deflating the manufactured crisis of the June 1, 2023 ‘X-date.’

It is unclear at this time how the Biden administration and Republican lawmakers will reach an agreement on a budget deal that lifts the debt ceiling. It is also unclear if Yellen will provide the requested documentation and data to the House Freedom Caucus. However, it is clear that the U.S. government will run out of money to meet its obligations if Congress does not raise or suspend the debt limit by June 5.