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A union of government employees on Monday sued Treasury Secretary Janet Yellen and President Joe Biden to try to stop them from complying with the law that limits the government’s total debt, which the lawsuit contends is unconstitutional.
The lawsuit comes just weeks before Yellen has warned that the government could default on the federal debt if Congress fails to raise the borrowing limit by then.
The lawsuit, filed by the National Association of Government Employees, says that if Yellen abides by the debt limit once it becomes binding, possibly next month, she would have to choose which federal obligations to actually pay once the debt limit bars the government from further borrowing.
Some analysts have argued that in that case, the government could prioritize interest payments on Treasury securities.
