The deadline the US Congress has to pay its bills on time is October 18th and Secretary of the Treasury Janet Yellen said if Congress does not “Failing to increase the debt limit would have catastrophic economic consequences,” If we don’t raise the debt ceiling, the Treasury will run out of emergency funds to pay U.S. debt holders by that date.
In August, a statutory limit on the debt ceiling was reinstated, despite the fact the government of the US drastically needed funds to continue financing the needs of the population through the pandemic. The pandemic-era spending was authorized by both the Trump and Biden administrations, but the responsibility to raise the debt ceiling is falling squarely on Biden and his administration. Democrats have complete control over all 3 bodies and seem to be failing at coming to agreement on how to move forward. If the government can’t come to an agreement “it would be a financial crisis and a calamity,” Yellen said.