According to Treasury Secretary Janet Yellen, the federal government will not be able to pay its bills from December 15 due to a lack of funds
“While I have a high degree of confidence that Treasury will be able to fund the US government by December 15 and complete investments in the Highway Trust Fund, there are scenarios in which Treasury will not have sufficient resources to continue to fund US government operations beyond that date”, – she wrote in a letter to congressional leaders.
To ensure full confidence in the United States, Yellen called on Congress to raise or suspend the national debt limit as soon as possible. The deadline for dealing with the problem, set by the head of the Treasury until December 3, has been pushed back to December 15.
The US government has a large budget deficit as spending exceeds tax revenue. The government borrows money by issuing bonds in order to balance the deficit. There is a limit on the issuance of these securities set by Congress. This limit is repeatedly raised or limited.