(CN) — A union that represents federal employees filed suit for an injunction Monday against the federal law that gives the White House unilateral authority to cut government spending if Congress can’t compromise on stalled debt ceiling negotiations.
Application of the law could be imminent since there has been no agreement to raise the limit of $31.4 trillion reached in January. As the tense stalemate over federal spending limits has dragged on in Congress, Republicans have insisted that any increase to the debt ceiling come with austere budget cuts. Treasury Secretary Janet Yellen has deployed various accounting measures to prevent a default on the government's loans, but she predicts those measures will not hold out past June 1.
A default would have dire ramifications for the entire U.S. economy, but the National Association of Government Employees notes in its lawsuit that impact on its members would entail layoffs, furloughs or loss of benefits as the Treasury Department prioritizes payment of government loans over other federal spending.
The workers’ union brought its federal complaint in Boston, where its lead counsel at Lichten & Liss-Riordan is located.
“Some employees may be forced to work unpaid with only the promise that they may be paid if and when the debt limit crisis is resolved,” the lawsuit states. It also notes that workers may be unable to find other jobs during a furlough under federal law.
In an effort to protect its members, the union alleged...
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