As the political division over lifting the loan limit intensifies, the National Association of Government Employees (NAGE) initiated a lawsuit to stop the execution of a law that determines the country’s debt limit, saying that it is unconstitutional.
According to the lawsuit, if the debt ceiling is raised, President Biden and Treasury Secretary Janet Yellen will have to choose which installments to put first, which could result in a violation of the division of powers because they would be using Congress’s financial power.
The complaint claims that the Debt Limit Statute is illegal since it forces the President to choose between using the freedom to keep borrowing to make payments for programs that Congress has previously correctly permitted and for that Congress provided money and using the freedom to prevent borrowing and choose which of these programs the President, and not the Congress, might suspend, restrict, or reject entirely.
Yellen has stated that if the borrowing cap is not increased, the United States might begin to fail on its debt as soon as June 1.