Next week the U.S. is expected to hit the nation’s statutory debt ceiling. In a letter to House Speaker Kevin McCarthy on Friday, Treasury Secretary Janet Yellen warned that unless the nation moves quickly to take preventative steps, it could end up defaulting on its obligations

In her letter, Yellen wrote, “Once the limit is reached, Treasury will need to start taking certain extraordinary measures to prevent the United States from defaulting on its obligations.” She went on to point out however, that taking such measures will only buy Congress a time-extension to negotiate a debt-limit increase, and most likely that extension will only last until June.

The Secretary went on to explain, “The use of extraordinary measures enables the government to meet its obligations for only a limited amount of time…It is therefore critical that Congress act in a timely manner to increase or suspend the debt limit. Failure to meet the government’s obligations would cause irreparable harm to the US economy, the livelihoods of all Americans, and global financial stability.” 

The debt ceiling was last lifted in December 2021. Currently the US national debt is capped at a level of $31.4 trillion.

Experts worry that disputes over the issue of raising the debt ceiling between Republican and Democrat politicians may draw the process out. Following the delivery of Yellen’s letter, the White House noted it was supportive of an increase, and it implored Congress to act in a prompt and bipartisan way.

On Friday, White House press secretary Karine Jean-Pierre said, “We believe when it comes to the debt limit, it has been done in a bipartisan way over the years and decades, and it should be done, and it should be done without conditions… There’s going to be no negotiation over it.”