(NewsNation) — In a letter to House Speaker Kevin McCarthy, Treasury Secretary Janet Yellen pushed back the deadline for lawmakers to raise the debt ceiling to June 5.
Before this, she had said the United States would run out of cash by June 1.
“Since January, I have highlighted to you the risk that Treasury would be unable to satisfy all of our obligations by early June if Congress did not raise or suspend the debt limit before that time. In my letters, I also noted that I would continue to update Congress as more information became available,” Yellen wrote. “Based on the most recent available data, we now estimate that Treasury will have insufficient resources to satisfy the government’s obligations if Congress has not raised or suspended the debt limit by June 5.”
Not raising the debt ceiling could lead to a potentially catastrophic default. A default would potentially devastate the U.S. and global economies depending on the duration of the political standoff.
This story is developing. Refresh for updates.
The Associated Press contributed to this report.