United States Hits $31.4 Trillion Debt Limit, Treasury to take ‘Extraordinary Measures’

By: BZ Green

Thursday, the United States officially hit the debt limit of 31.4 trillion dollars—and, given the heightened partisanship in Washington, there is likely to be a bitter dispute between lawmakers as to the way back from the precipice.

Responding to this milestone, Treasury Secretary Janet L. Yellen said the government would begin to take ‘extraordinary measures’ to prevent the United States from going over the limit.

“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,” Ms. Yellen said. “I respectfully urge Congress to act promptly to protect the full faith and credit of the United States.”

But herein lies the rub, Republicans, who now have a majority in Congress, have vowed not to raise the debt limit if the Biden Administration does not commit to steep cuts in federal spending. The Democrats are unlikely to agree to this approach.

photo credit: Flickr