Treasury Secretary Janet Yellen stated Friday that she might need to take “extraordinary measures” to maintain the federal authorities functioning if lawmakers can’t increase or droop the debt restrict—a warning that comes as Home Speaker Mike Johnson navigates the tough subject of sustaining GOP help.
“I respectfully urge Congress to behave to guard the complete religion and credit score of the USA,” Yellen wrote in a letter to members of Congress. The “extraordinary measures” are anticipated to be required between Jan. 14 and Jan. 23, based on Yellen.
Along with presenting a problem to the incoming Trump administration, which has most popular the debt ceiling subject be resolved by Inauguration Day, its particularly thorny for Johnson because of the slim Republican margins within the Home.
A raised debt ceiling with out the help of any Democrats would imply solely a few Republican defections might be afforded. However as historical past has proven, a number of the extra hard-line members of the GOP might simply reject any deal. In flip, Johnson’s function as speaker might be jeopardized.
With out a speaker being elected, among the many ensuing points might be the Home’s incapability to certify the 2024 election outcomes on Jan. 6, for the reason that newly elected speaker has to swear within the members to conduct their enterprise.
The Structure states that every new Congress begins at midday on Jan. 3. In June 2023, President Joe Biden and then-Home Speaker Kevin McCarthy agreed to droop the debt restrict. The suspension is at the moment anticipated to finish on Jan. 2.
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