Staff Report –

WASHINGTON, D.C. — New Democratic Whip Katherine Clark of Massachusetts went on the offensive against the MAGA House Republicans on Tuesday and was joined by fellow House Democrats, veterans, families, local lawmakers and the non-profit activist group Courage for America in speaking out at a rally outside the U.S. Capitol against the Republican manufactured debt default crisis.

“It shouldn’t take a wave of grassroots action to avert a national catastrophe,” Clark said. “Constituents shouldn’t have to deal with a disaster that is manufactured by their own GOP Representatives. But that is what it’s come to.”

The United States faces an “elevated risk” of running out of cash to pay its bills between June 2 and 13 if Congress does not raise or suspend the nation’s debt limit, according to an analysis released on Tuesday by the Bipartisan Policy Center, an influential think tank that carefully tracks federal spending. The analysis underscores the growing possibility that the United States will default on its debt as soon as next week. It comes amid negotiations between the White House and Republicans in Congress to reach an agreement that would also lift the $31.4 trillion borrowing cap.

“Come early June, Treasury will be skating on very thin ice that will only get thinner with each passing day,” said Shai Akabas, the center’s director of economic policy. “Of course, the problem with skating on thin ice is that sometimes you fall through.”

The center said that the Treasury Department would be operating on “dangerously low” cash reserves after Memorial Day and that each day in June would come with increasing risk. The department has been using accounting maneuvers known as extraordinary measures to delay a default since the United States technically hit the debt limit in January, but those are expected to be exhausted soon.

“There must be a way to address our serious fiscal challenges without time and again putting the full faith and credit of the United States at risk,” Akabas said. “A comprehensive reform of the debt limit would minimize danger to the American public and help get us out of this vicious cycle.”

The action at the Capitol was for every American who has had to make their voice heard, Clark said, “all because a few extremist politicians refuse to do their jobs.”

“This past weekend in Boston, we met in the pouring rain to demand an end to this madness. Because those activists, those members of communities across the Commonwealth are as terrified as other Americans – for their families, for their livelihoods, for their future, for the stability and credibility of our country,” she said.

“So, let’s be clear about what’s on the table. This is about Ideology vs. Responsibility. This about Politics vs. People. This is about Extremism vs. Common Sense,” she continued. “The MAGA Majority wants the American people to make an impossible choice: accept devastating cuts or a devastating default. They manufactured a crisis so they could bully and threaten the very people they were sent to Washington to represent. So they could hand them a ransom note that says: 300,000 kids will be kicked out of child care, 400,000 families out of their homes, 21 million people off of Medicaid, 30 million doctors’ appointments at the VA will be cancelled.”

Why are they doing it, she asked?

“Why go after their own constituents? So they can stuff even more money into the pockets of billionaires. So they can help even more tax cheats dodge the IRS,” she said.

This was never, and continues not to be, about a deficit, or a spending plan, she pointed out.

“Republicans racked up $8 trillion in debt under Donald Trump – a quarter of everything we owe in four short years. They don’t care about spending,” she said. “They care whose pocket it all ends up in.”

If we don’t comply with their demands, if we don’t agree to put billionaires first, she said, “they’ll send America into freefall.”

What exactly does default mean? It means 8.3 million jobs lost, $1.6 trillion wiped from our economy, retirement savings gutted, kitchen table budgets decimated, prices sent skyrocketing – just to protect the very rich, the very wealthy from paying their fair share.

“So, here’s the thing: the American people don’t take well to being threatened,” she said. “So, here’s my advice to Speaker McCarthy. Start listening to the people that we represent. Listen to the mayors who are telling you what the consequences of your actions will be. Listen to the parents depending on Head Start to get by. Listen to the seniors who would go hungry without Meals on Wheels. Listen to the heroes whose health care is on the line. Do your job. Honor your oath of office. Put People Over Politics. Put Democracy Over Extremism. Put the American people first. And, stop with this default crisis.”

Treasury Secretary Janet L. Yellen said this week that she thought it was unlikely that the federal government would have enough cash on hand to make it to mid-June.

In a letter to Congress on Monday, Ms. Yellen reiterated her estimate that the X-date could arrive as soon as June 1. Her warning did not come with the caveats included in her previous updates, which had suggested that the government’s cash reserves could potentially last for a few additional weeks. Instead, she emphasized the urgency of the situation.

“If Congress fails to increase the debt limit, it would cause severe hardship to American families, harm our global leadership position and raise questions about our ability to defend our national security interests,” she said.

As the X-date approaches, the Treasury Department has been checking with federal agencies about the timing of upcoming expenditures. Treasury recently sent a memo to agencies to inquire if any scheduled payments could be delayed.

“To produce an accurate forecast around the debt limit, it’s critical that Treasury have updated information on the magnitude and timing of agency payments,” Lily Adams, a Treasury spokesperson, said. “As in prior debt limit episodes, Treasury will continue to regularly communicate with all aspects of the federal government on their planned expenditures.”

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