US will default by June 5 without debt-ceiling deal, Treasury says

allows a little more time for Democratic President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy to reach an accord to raise the federal government's self-imposed borrowing limit. Previously Treasury had said the deal needed to be reached as soon as June 1.

Any agreement would have to win approval in the Republican-controlled House and the Democratic-led Senate before Biden could sign it into law - a process that could take more than a week. The Republican proposal would require more participants in those programs to show they are working or looking for work. That would save $120 billion over 10 years but also force more than a million Americans out of those programs, according to the nonpartisan Congressional Budget Office.U.S.

The deal under consideration would increase funding for the military and veterans care while essentially holding non-defensespending at current-year levels, according to the official, who spoke on condition of anonymity. The Treasury Department had previously warned that it could be unable to cover all its obligations as soon as June 1.they have put the United States on review for a possible downgrade, which would push up borrowing costs and undercut its standing as the backbone of the global financial system.Even if they reach a deal, leaders from both parties will have to work hard to round up enough votes for approval in Congress.

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