Debt Limit Deadlock: US House Divided.

Congress needs to reach a bipartisan agreement to raise the nation's debt limit before the Treasury Department exhausts its "extraordinary measures" by June 1. House Republicans want spending cuts attached to the debt limit increase, while the Biden administration insists on a no-strings-attached agreement. If a deal is not reached, the government could default on its financial debts, causing severe economic turmoil. The Treasury could prioritize payments, but it would be politically difficult and painful for those who rely on government payments. Other workarounds, such as minting a $1 trillion coin or ignoring the debt limit, have been suggested, but all paths lead to the same place: the United States needs to find a way to pay its bills.