This week, Treasury Secretary Janet Yellen urged Congress to increase or suspend the debt limit in a bipartisan vote before the federal government runs out of borrowing authority this fall.
Yellen said increasing or suspending the debt limit does not increase government spending, nor does it authorize spending for future budget proposals.
"It simply allows Treasury to pay for previously enacted expenditures," Yellen added. "The vast majority of the debt subject to the debt limit was accrued prior to the Administration taking office. This is a shared responsibility and I urge Congress to come together on a bipartisan basis as it has in the past to protect the full faith and credit of the United States."
A group of 46 Republican senators responded Wednesday that Democrats have engaged in a "massive and unprecedented deficit spending spree" that includes the $1.9 trillion COVID-19 relief bill passed in March and the $3.5 trillion budget resolution passed by the Senate this week. The senators, led by Senate Minority Leader Mitch McConnell (R-KY) and Sen. Ron Johnson (R-WI), said they "will not vote to increase the debt ceiling, whether that increase comes through a stand-alone bill, a continuing resolution or any other vehicle."
McConnell has said Democrats should address the debt limit through reconciliation, the vehicle Democrats have chosen to try to advance their social spending package.
"Democrats want Republicans to help them raise the debt limit so they can keep spending historic sums of money with zero Republican input and zero Republican votes," McConnell said this week. "Imagine a friend tells you he's flying to Las Vegas to blow all his money. He doesn't care that you think it's irresponsible and you aren't invited to come. But he wants you to co-sign a loan for him before he leaves."
This article was provided to OSAP by ASAE's Power of A and Inroads.