The federal government will bump up against its borrowing limit next week, the Treasury Department said, putting Congress on notice that it must approve an increase or risk Uncle Sam not being able to cover the bills.
Secretary Janet Yellen said Friday her department will use other tools to cover payments, but those tools can only last so long. Once they run out, if Congress and President Biden haven’t agreed to an increase in borrowing authority, the government will only be able to pay according to income.
The current debt limit is $31.381 trillion, which was set in mid-December 2021, when Congress approved a $2.