Senate Minority Leader Mitch McConnell (R-Ky.) told Secretary of Treasury Janet Yellen during a phone call that he will not change his decision to not raise the debt limit, saying he opposes the recklessness of the $3.5 trillion budget reconciliation bill and Democrats can do it alone.
In a letter to leaders of Congress last week, Yellen said she does not know the exact date the funding will run out but knows it will be before the end of the year and urged leaders to raise the limit. In the event the United States defaults on its loans, according to estimates from the Congressional Budget Office, funding for Social Security, Supplemental Security Income, and Medicare will likely be halted.
And Yellen warned that once cash on hand and other available measures are exhausted, the United States “would be unable to meet its obligations for the first time in our history.”
McConnell, even last week, said if Democrats want to keep adding to the national debt with reckless spending, then they can raise the debt limit on their own.
McConnell wrote that the last $1.9 trillion relief package and the current one being considered by Democrats are unnecessary and are instead contributing to inflation and unfilled jobs.
“Back in 2020, during the teeth of the COVID emergency, Congress worked across party lines to pass massive rescue packages that Republicans and Democrats had written together. Virtually every serious expert agreed that after the last relief bill that we passed in December, the economy was primed and ready,” said McConnell. “But our Democratic colleagues wanted more.”
“Like they admitted from the start of the pandemic, they wanted to use the crisis to ‘restructure things to fit [their] vision.’ From a temporary emergency… to permanent socialism,” he added.
Senate Majority Leader Chuck Schumer (D-N.Y.) responded to McConnell’s declaration, hinting that they would not use the reconciliation process to raise the debt limit.
Sen. Elizabeth Warren (D-Mass.) also fired back at McConnell, saying that the Republicans contributed to the national debt. She went on to say that they are bluffing and know they need to lift the ceiling to avoid terrible fiscal consequences.