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US debt ceiling crisis live: Treasury Secretary Janet Yellen confirms June 1 deadline as deal remains elusive Kevin McCarthy

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everyone in washington dc Joe Biden To Kevin McCarthy The rank and file of Congress — young and old — could see a debt ceiling standoff coming for months. The US government tracks its spending and borrowing, and as of last year, the Treasury Secretary Janet Yellen Began sending letters to Congress warning that action must be taken to allow the government to continue paying its bills after a certain date. In his latest letter Sent yesterday, they made clear the government would have little time from the first of June to agree an increase.

For the GOP, the debt ceiling is one of the few leverage they have over the Biden administration, and they have sought to cut spending and implement conservative priorities — such as the president’s effort to cancel some student loans Repeal – Exchange their votes in the House to raise the ceiling.

But Democrats had an opportunity to reverse this situation in the last Congress, when they controlled both the Senate and the House. As Politico reported yesterdaySome MPs are expressing regret that they did not act then to raise the borrowing limit:

Looking back on the first two years of Joe Biden’s presidency, Tim Kaine has one major regret about what turned out to be largely successful Democratic governance: that his party didn’t try to raise the debt ceiling on its own last year.

The senator from Virginia believes that if Democrats had tried to raise the debt ceiling before the House GOP had a majority, Sen. Joe Manchin (DW.Va.) would have gone along with it as well. But Biden’s party never moved forward on this issue. And six months later, Democrats are doing what they said they wouldn’t do — negotiating with Republicans on the debt ceiling.

“If I could do anything differently,” Kaine lamented this week, it would be the debt increase in late 2022. “And I was saying at the time… ‘Hey, we got the votes.’

Updated at 09:25 EDT

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Punchbowl News reports that the House Speaker Kevin McCarthy told Republicans in a closed-door meeting that a deal Joe Biden Raising of loan limit not imminent:

????????New – What @SpeakerMcCarthy Just told House Republicans…

Inside a closed-house GOP meeting:

“I want you all to hang on to the debt limit with me.

“We are not near a deal yet.”

— Jake Sherman (@JakeSherman) May 23, 2023

“I told the president three things: No clear debt ceiling, don’t raise taxes, spend less money.

“Remember where we were – they refused to negotiate.

“We appreciate Garrett Graves and Patrick McHenry.

“He made the mistake of not negotiating. Let’s be strong…

— Jake Sherman (@JakeSherman) May 23, 2023

The speaker’s comments were a marked contrast to yesterday’s tone, when he said he had had “productive discussions” with Biden but had not yet reached an agreement.

The Treasury is not just warning MPs about the critical need to raise the debt limit until June. Washington Post report That department has written to US government agencies to determine if they can delay the payment.

Here’s more from his story:

Treasury officials have asked their counterparts in other federal agencies about payment flexibility to call off so-called “X-dates” when reserves dry up, one of the people said. The person said Treasury has not asked federal agencies to postpone payments past their due dates.

Planning has become increasingly necessary in recent times. Last week, senior Treasury staff sent a memo to federal agencies instructing them to take additional steps to keep the Treasury Department more closely informed about their spending. In the memo — which was obtained by The Washington Post and was not previously reported — Financial Assistant Secretary for Treasury David A. Labrecque told agency officials to make all “deposits and disbursements” between $50 and above at least two days in advance. Treasury was ordered to inform. million and $500 million. The memo said five days’ notice was required for payments over $500 million.

“Please stress to your staff the importance of these updates during this time and ensure that your agency’s reports are accurate,” the memo said. “Your reporting offices should match reported amounts to actual payment activity during the critical period to ensure the reliability of these reports.”

A White House spokesman declined to comment. A Treasury spokeswoman said: “In order to make an accurate forecast around the debt ceiling, it is important that Treasury has updated information on the magnitude and timing of agency payments. Will continue to communicate regularly with all aspects of government.

everyone in washington dc Joe Biden To Kevin McCarthy The rank and file of Congress — young and old — could see a debt ceiling standoff coming for months. The US government tracks its spending and borrowing, and as of last year, the Treasury Secretary Janet Yellen Began sending letters to Congress warning that action must be taken to allow the government to continue paying its bills after a certain date. In his latest letter Sent yesterday, they made clear the government would have little time from the first of June to agree an increase.

For the GOP, the debt ceiling is one of the few leverage they have over the Biden administration, and they have sought to cut spending and implement conservative priorities — such as the president’s effort to cancel some student loans Repeal – Exchange their votes in the House to raise the ceiling.

But Democrats had an opportunity to reverse this situation in the last Congress, when they controlled both the Senate and the House. As Politico reported yesterdaySome MPs are expressing regret that they did not act then to raise the borrowing limit:

Looking back on the first two years of Joe Biden’s presidency, Tim Kaine has one major regret about what turned out to be largely successful Democratic governance: that his party didn’t try to raise the debt ceiling on its own last year.

The senator from Virginia believes that if Democrats had tried to raise the debt ceiling before the House GOP had a majority, Sen. Joe Manchin (DW.Va.) would have gone along with it as well. But Biden’s party never moved forward on this issue. And six months later, Democrats are doing what they said they wouldn’t do — negotiating with Republicans on the debt ceiling.

“If I could do anything differently,” Kaine lamented this week, it would be the debt increase in late 2022. “And I was saying at the time… ‘Hey, we got the votes.’

Updated at 09:25 EDT

Good morning, American Politics blog readers. Congress Got Bad News From the Treasury Secretary Janet Yellen as of yesterday afternoon letter to top parliamentarians That said, early June, perhaps as early as the first of the month, is the day the US government will run out of money and potentially default for the first time in history. Joe Biden and Republican Speaker of the House Kevin McCarthy Have been negotiating some kind of deal to stop this since last week, but have yet to reach an agreement, despite another round of face-to-face talks tomorrow. Yellen’s letter confirms that no change is likely for either side if they want to prevent an economically devastating debt crisis. Expect to hear more about this long-running impasse during the course of today.

Here’s what else is going on:

  • credit limit It will undoubtedly be discussed when House GOP leaders hold a press conference at 10 a.m. Eastern Time.

  • a nazi swastika flag It was found in a truck that crashed into the White House security barriers last night. The driver has been arrested.

  • White House Press Secretary Karine Jean-Pierre Will give information to journalists at 2.30 pm.