Yellen Resets Potential Debt Default To June 5

Treasury Secretary Janet Yellen on Friday issued a new letter to Congress estimating that the government won't be at risk of running out of money to pay all its bills until June 5 -- slightly later than the agency's previous estimate of June 1, Elizabeth Schulze, Cheyenne Haslett and Molly Nagle reported for ABC News.

Photo Insert: President Joe Biden holds a meeting with Senate Majority Leader Chuck Schumer (D-NY), Minority Leader Mitch McConnell (R-KY), House Speaker Kevin McCarthy (R-CA) and House Minority Leader Hakeem Jeffries (D-NY) to negotiate on the debt ceiling.

"Based on the most recent available data, we now estimate that Treasury will have insufficient resources to satisfy the government's obligations if Congress has not raised or suspended the debt limit by June 5," Yellen wrote.

Republicans questioned Yellen’s methodology, with some accusing her of "manipulation tactics."

As he headed to Camp David on Friday evening, President Joe Biden sounded optimistic about negotiations and hopeful that more progress will come into the night.

"There's a negotiation going on. I'm hopeful we'll know by tonight whether we are going to be able to have a deal," Biden said.

"Things are looking good. I'm very optimistic. I hope we'll have some clear evidence tonight before the clock strikes 12 that we have a deal, but it's very close. And I'm optimistic," he added.

The update buys much-needed time for negotiators to hammer out a deal to raise the debt limit and avoid a disastrous default. The "X-date," when the US will run out of funds to pay all its bills in full and on time, has always been fluid as it is based on daily federal tax revenues and expenditures.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic