Treasury Secretary Janet Yellen sent a letter to Congress warning that the federal government may be unable to pay its outstanding obligations as soon as June 1 if the debt ceiling is not raised.

Key Quotes: “Our best estimate is that we will be unable to continue to satisfy all of the government’s obligations by early June, and potentially as early as June 1,” Yellen wrote, urging Congress to “act as soon as possible to increase or suspend the debt limit in a way that provides longer-term certainty that the government will continue to make its payments.” Yellen also warned Congress of the potential harm of a drawn-out debt ceiling debate, stating, “We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States.”

For Context: Last week, House Republicans passed a bill that would raise the debt ceiling by $1.5 trillion or through March 2024 in exchange for $4.8 trillion in spending cuts. Senate Leader Chuck Schumer (D-NY) said the bill was “dead on arrival.” Democratic leaders are calling for a clean bill raising the debt ceiling without spending cuts. 

How The Media Covered It: Outlets across the spectrum covered the warning. Apart from quoting Yellen, the Washington Times quoted only a Republican lawmaker supporting the Republicans plan.