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The US Treasury Secretary Janet Yellen on Friday notified lawmakers that America will run out of money to pay its bills by June 5 if they do not raise the debt ceiling.
In a notation to lawmakers, she wrote “Based on the most recent available data, we now estimate that Treasury will have insufficient resources to satisfy the government’s obligations if Congress has not raised or suspended the debt limit by June 5.”
She had previously been less specific, saying the breach could occur “potentially as early as June 1” now with this extension, negotiators will have to clinch a deal to raise the debt ceiling.
The Treasury Department hit the statutory borrowing limit in January and has since been using “extraordinary measures” to pay the country’s bills.
The letter comes as the White House and House Republican negotiators still haven’t reached a deal, but one must now be reached.