Yellen urges Congress to raise debt limit with GOP support

Treasury Secretary Janet Yellen urged Congress on Monday to pass a bipartisan resolution to raise the amount of money the U.S. government can borrow, saying failing to increase the debt ceiling so would "cause irreparable harm" to the economy.

Why it matters: Republican lawmakers, led by Senate Minority Leader Mitch McConnell (R-Ky.), have threatened to refuse to vote for raising the debt ceiling, which came back into force on Aug. 1.
 

• They've instead called on Democrats to do so in their multitrillion-dollar budget reconciliation package, which can’t be filibustered and requires only a simple majority to pass.

 

• McConnell told Punchbowl News last month that he "can’t imagine there will be a single Republican voting to raise the debt ceiling" in light of how much Congress has already spent during the pandemic.