The Capitol is seen in Washington, Monday, May 1, 2023. (AP)

White House spokesperson Karine Jean-Pierre told reporters, on Tuesday, that the US defaulting on its debt would be a gift to China and Russia.

If Congress does not raise the debt ceiling by June 1 the US government will start defaulting on payments. Later in the day, President Joe Biden and senior Republican senators will debate the issue at hand.

In her statement, Jean-Pierre said "If there was a default, it would be a gift to China, to Russia, and to other competitors," adding that "China and Russia would look to take advantage of the opportunity if we were to default."

According to the spokesperson, US National Intelligence Director Avril Haines told Congress last week that Moscow and Beijing planned to use default to highlight the unrest in the US.

Jean-Pierre said that a potential default would raise doubts about the strength of the US dollar and US institutions across the world.

Prior to his afternoon meeting with President Joe Biden, US House Speaker Kevin McCarthy stated that he would oppose the extension of the national debt ceiling until September 30.

Finally, Jean-Pierre declined to comment on the impending meeting.

US at risk of debt default by June 1 if limit not raised: Yellen

Treasury Secretary Janet Yellen warned, on May 2nd, that the US is threatened by a debt default as soon as the start of June, as lawmakers struggle over raising the borrowing limit.

In a letter to House Speaker Kevin McCarthy, Yellen said, "Our best estimate is that we will be unable to continue to satisfy all of the government's obligations by early June, and potentially as early as June 1, if Congress does not raise or suspend the debt limit before that time."

Yellen also said the US could run out of money in case the debt limit is not raised. “Given the current projections, it is imperative that Congress act as soon as possible to increase or suspend the debt limit in a way that provides longer-term certainty that the government will continue to make its payments," she further warned.

This follows after a Republican bill to increase the debt limit and cut down on government spending was passed last Wednesday after a narrow 217-215 vote in the US House of Representatives - a major win for McCarthy but seems to be a struggle at the moment.

McCarthy's proposal included raising the US debt limit by $1.5 trillion to avert a default of the world's biggest economy.

Nearly half of the House Democrats have expressed fondness for McCarthy's initiative such that it presents a potential compromise between the two parties: inviting Biden to negotiate an agreeable decision with McCarthy.

However, Democrat Senators seem to disagree with their House counterparts. The upper chamber Democrats stand firm by the President's decision to accept no concessions on the debt-ceiling raise.