Treasury Secretary Janet Yellen is warning Congress to raise the federal debt limit as soon as possible or risk potential harm to the U.S. economy.
In a letter to congressional leaders, Yellen claimed that as of August 1st, the outstanding debt of the United States will be at the statutory limit. While it's been done a few times in recent history, getting Congress on board to raise the debt ceiling through regular order right now might not be so easy.
Republicans say Democrats are in a spending free for all and argue they'll only support raising the debt ceiling if Democrats promise major spending reforms.
"The reckless tax and spending spree is heading our way," warned Senate Minority Leader Mitch McConnell (R-KY).
With the current debt closing in on $29 trillion dollars, Republicans want to see substantial cuts in projected government spending over the next ten years.
President Biden's budget plans would take the national debt well over $40 trillion within 10 years, while Republicans caution that's dangerous.
"We're playing Russian roulette with our economy because we're continuing to pour trillions of dollars into our economy," continued McConnell.
The Treasury Department says they will need to take extraordinary measures to avoid defaulting before they run out of cash likely in October or November.
"Let there be no question, we will address the debt limit," declared House Speaker Nancy Pelosi on ABC This Week.
House Speaker Nancy Pelosi argued Republicans addressed the debt limit three times under President Trump with Democratic support and accused McConnell of playing partisan games.
"He's always been there to be an obstruction to a Democratic president," claimed Pelosi. "The full faith and credit of the United States is never to be placed in doubt."
Biden argues it's not new spending that's the problem.
"The reason for the significant debt is because of their debt, their tax limit, excuse me, their tax cut," said Biden.
If Democrats don't get the support of ten Republican senators, they could be forced to increase the debt limit alone through their upcoming budget reconciliation bill, which only needs a simple majority to pass the Senate.