#Yellen says drop-dead date for debt ceiling is June 1

Treasury Secretary Janet Yellen in a Monday letter to congressional leaders said they have only until June 1 to pass legislation to raise the nation’s debt ceiling.

Yellen told lawmakers that she expects the U.S. to no longer be able to pay all of its outstanding obligations by as early as June 1, ramping up pressure on Congress and the White House to come to an agreement.

Yellen initially told lawmakers that it was unlikely the federal government would exhaust its measures to continue paying its bills before early June. But now, citing recent tax revenues, Yellen said the deadline is expected to come sooner than expected.

The timetable gives lawmakers precious little time to work out the mechanics of a deal.

President Biden and Democrats are demanding that House Republicans raise the debt ceiling as part of a “clean” piece of legislation, while the GOP wants any hike in the borrowing limit tied to spending cuts.