During hearings this week on the White House’s Fiscal 2023 budget proposal, Treasury Secretary Janet Yellen endorsed a House bill that would grant Treasury the authority to raise the nation’s debt ceiling instead of Congress.
The Debt Ceiling Reform Act was introduced last year by House Budget Committee Chair John Yarmuth (D-KY) and Budget Committee Vice-Chair Brendan Boyle (D-PA) to eliminate the political brinkmanship that has in the past pushed Treasury to the verge of running out of money to pay the nation’s debts.
Boyle said the debt limit, first created in 1917, has outlived its usefulness. “Simply put, the debt ceiling is incapable of accomplishing what it sets out to do – to control how much the government borrows – as the bills Congress passes are legally binding and cannot be inhibited by such a limit,” Boyle said.
Yellen has previously said she supports abolishing the debt limit and reiterated that position this week. “I am strongly supportive of the kind of initiative you mentioned,” Yellen said. “It is simply insanity to face debt ceiling crises periodically.”