Some House Republicans are questioning Treasury Secretary Janet Yellen‘s projection that the U.S. could fail to meet its obligations as early as June 1 without a debt limit increase. And doubt about the date is paired with doubt about the urgency of compromising with Democrats to arrive at a deal.
Yellen repeated Monday in a letter to House Speaker Kevin McCarthy (R-Calif.) it’s “highly likely” the U.S. will not meet its obligations “by early June, and potentially as early as June 1.”
“Yellen first highlighted June 1 as a possible default date in a May 1 letter that caught some members of Congress by surprise and sparked negotiations between President Biden and McCarthy,” The Hill’s Emily Brooks wrote.
“I don’t know why we accept that,” House Freedom Caucus Chairman Scott Perry (R-Pa.) said of the date. “We haven’t seen her work. We haven’t seen any figures.” He mentioned quarterly tax revenues are coming in June and said, “There’s absolutely no reason to do this, and we all know it.”
The Congressional Budget Office released a report earlier this month estimating a “significant risk” of default within the first two weeks of June if no deal is reached, adding that quarterly tax receipts along with other measures could extend the default deadline if the country makes it to June 15.
McCarthy is taking the June 1 warning seriously and has said the GOP will need to compromise with President Biden to reach a deal. Negotiations are mainly taking place between McCarthy’s and Biden’s camps.
Meanwhile, Senate Minority Leader Mitch McConnell (R-Ky.) called for calm, saying, “I think everybody needs to relax” and reiterating his belief that the country won’t default.
He said the current situation is “not that unusual” and is “almost entirely required when you have divided government.”
Read more from Brooks here