[U.S. Capitol. Photo credit to pixabay]

On May 1, 2023, treasury secretary Janet L. Yellen stated that the United States of America could run out of money to pay its bills by June 1 if nothing is done to fix this issue. 

She suggested they either raise or suspend the debt limit, the maximum amount of money the U.S. can borrow to pay their debt.

Without taking action, this arising problem could impact millions of lives.

Though the U.S. has never faced this issue, in 2019, they already had to suspend the debt limit for two years.

Recently, that limit was reset back to $24.8 trillion, which is on the brink of reaching. 

Before that could happen, Janet L. Yellen is pressuring President Joe Biden and lawmakers to decide to avoid consequences that will arise if nothing is done to solve this massive problem of running out of money. 

Democrats and Republicans are desperately trying to stop the financial market from crashing by coming up with solutions. 

One of their ideas is raising the limit so that the money will not exceed the borrowing cap.

So, the government is trying to lift the nation's borrowing cap to prevent the U.S. from running out of money.

The Republicans passed a legislature in April to increase the limit numbers. 

Though most support this suggestion, some are skeptical as this bill may only benefit oil and gas companies while working families have to pay more than before. 

Through this issue, household payments on mortgages, auto loans, and credit cards would rise, as well as the inability to issue payments to people like the military and seniors. 

Many people are accusing the lawmakers of putting America’s economy on the line.

While this debate is warring in the House, time is running out, and many, especially the treasury secretary, are becoming desperate. 

As more ideas are being thought of, Democrats suggest limiting their spending to save money so that they would not go over their limit. 

President Biden is meeting with representatives to discuss what is best in dealing with this situation as this affects everyone, not just the government and the bills. 

As the government is looking for other ways to improve the situation, Yellen continues to pressure them by saying that they have to act as soon as possible so that the limit will not be reached.

This situation is getting more dire as the limit is increasing; the limit was already hit once in January already and more could affect the economy negatively. 

As of April, only $300 billion is left to use for the government on bills and more. 

Also, with the taxes coming in from tax payday, $60 billion will likely be left. 

Another factor that contributes to the issue is the severe weather which is increasing in many areas is not helping with this situation as more and more money is being used. 

To try and help with the situation, the treasury department used extraordinary measures to allow the government to continue to pass bills for the country. 

Though they are doing everything they can, the department has reached its limit, and a new solution has to come forth to help with this issue. 

President Biden is trying to figure out other methods to prevent the raising the debt limit.

Through all this, Yellen is working to ensure that the federal government has enough money to use in the future and is suspending the issuance of State and Local Government Series Treasury securities to prevent excessive money loss. 

Even now, debates on how far the U.S. executive can go to prevent a default is being discussed.

As the issue gets more serious, the government is trying its best to come up with ideas that will leave the people least affected and, hopefully, with the debt limit under control.