The union said in the lawsuit that Congress cannot impose a debt limit "without at least setting the order and priority of payments once that limit is reached, instead of leaving it to the president to do so."
The union is seeking to strike down the law setting a debt limit and to block the Biden administration from limiting borrowing in the event of a default so it can continue funding government agencies. The lawsuit names Biden and Treasury Secretary Janet Yellen as defendants. A spokesman for the Treasury Department declined to comment. The White House did not immediately respond to a request for comment.that she would suspend investments in federal government workers' retirement and health benefit funds to avoid an immediate default. Yellen has warned that the U.S. could run out of cash to meet its obligations as early as June 1.
The union, which represents 75,000 government workers, said in Monday's lawsuit that its members have already been harmed by Yellen's extraordinary move. A default would further harm government workers by triggering furloughs and layoffs, the union said. Republicans in Congress have called for any increase in the debt ceiling to be tied to massive spending cuts. But Biden and other Democrats have insisted that raising the debt limit should not be linked to budget talks.on Tuesday, but an immediate deal to avert a default is not expected.Our Standards:Dan Wiessner reports on labor and employment and immigration law, including litigation and policy making. He can be reached at daniel.wiessner@thomsonreuters.com.
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