Treasury Department efforts to pay state bills have fallen to $88 billion from $110 billion just a week ago.

The department recently announced this in a report opinion that just over a quarter of the $333 billion in approved measures are still available to keep the government from reaching the statutory debt limit.

Earlier this month Treasury Secretary Janet Yellen said the government is at risk of running out of room to maneuver as early as June 1 and that the department may not be able to meet government commitments.

Yellen said Treasury markets have started to price in a default premium for securities maturing around that date. However, She has expressed her hope for a solution will be reached soon.

“It’s certainly not good for relationships, world standing and credibility,” Yellen reportedly told Reuters on the sidelines of the G-7 finance officials’ meeting in Japan.

A meeting between President Joe Biden and Speaker Kevin McCarthy on the debt crisis offered no cause for optimism, and leaders are due to meet again next week.

Also read: Mitch McConnell rules out helping Joe Biden with debt crisis: ‘They assume there’s a little secret plan here’

The government’s main source of income is taxes, and more money needs to come from them to cover all government spending.

Since the founding of the USA, the country has had a national deficit almost every year. To compensate, the government had to borrow money. It did this by issuing bonds that investors can buy and exchange for the same amount with interest. For fiscal year 2023, the government reports a deficit of 1.10 trillion US dollars. As a result, the Treasury is selling bonds to fund its deficit.

according to a report A Goldman Sachs chief economist previously told the New York Times that failure to pay government salaries, bondholders or Social Security recipients would result in a reduction in…