Vice President Kamala Harris on Thursday called on state and elected officials, as well as community and labor leaders, to help the Biden administration apply pressure on Congress to raise the debt limit before the country defaults for the first time in its history.

“Right now, we just need you, the leaders on this call, to do what you always do and make sure your voices are heard,” Harris said. “Make sure members of Congress know a default would not be acceptable under any circumstances.”

She also urged those on the conference call to talk with their friends, neighbors and colleagues to “make sure they understand the real consequences a default would have on their lives.”

“America must pay our bills, just like you and your family and other hardworking Americans do every single day,” the vice president said.

President Joe Biden, Harris and congressional leaders met Tuesday at the White House and agreed the U.S. must not default on its financial obligations. Biden was in Japan on Thursday for the Group of Seven summit, but his aides continue to negotiate with representatives for House Speaker Kevin McCarthy, R-Calif.

Treasury Secretary Janet Yellen has warned the U.S. could default on its debts as soon as June 1. Speaking to banking executives on Thursday, Yellen underscored the urgency for Congress to take action on the debt limit and warned of severe consequences for the banking system and the global economy if the U.S. were to default, according to the Treasury Department.

If Congress fails to act in time, the U.S. would default on its loans for the first time in its history, resulting in social security, military pay and other checks not going out and the government and Americans being hit with higher interest rates. A U.S. debt default also could roil world markets and potentially trigger a recession, leading to job layoffs, experts say.

McCarthy is demanding steep cuts to spending, which he claims has been out of control under Biden, in exchange for raising the debt limit. 

Harris argued Thursday that if congressional Republicans were serious about cutting the deficit, they would not be fighting to protect against tax hikes for high earners and large corporations. She pointed to a Congressional Budget Office report this month that predicted permanently extending the Trump-era tax cuts would cost $3.5 trillion.

However, Harris did not only warn about default itself, but also against the prospect of coming close to one. 

She cited the bitter 2011 debt-ceiling standoff between then-President Barack Obama and Republicans that dragged out until two days before the Treasury Department estimated the government would be unable to pay its bills. As a result, Standard & Poor’s downgraded the country’s credit rating for the first time in history and the S&P 500 index plunged 19%.

“Back in 2011, we saw that even coming close to a default … can hurt our nation's economy and families,” Harris said. “ … Millions of people lost money out of their retirement accounts. It became more difficult for both small and large businesses to secure loans, fill orders and hire new workers because the financial system was no longer confident that our nation could pay its bills. By some estimates, there would be 1 million more jobs today in our nation had that not happened.”

Harris said Tuesday’s White House meeting was “productive,” adding, “We believe it occurred in good faith.” 

Lael Brainard, director of the White House National Economic Council, updated leaders on the call about the talks and vowed that the Biden administration won’t give in to certain Republican demands. 

“The administration's negotiating team is fighting against extreme attempts to reverse the progress we've made — creating clean energy jobs, combating climate change and lowering costs for middle-class families, including for students, and for insulin and other drugs,” she said.

“And the administration's negotiators are also instructed to resist extreme attempts to take health care away from Americans or otherwise push Americans into poverty.”

Steve Ricchetti, counselor to the president, and Office of Management and Budget Director Shalanda Young are negotiating for the White House. Rep. Garret Graves, R-La., and McCarthy aides are handling talks for the speaker.

Brainard noted that Biden has proposed a $6.8 trillion budget, which the White House says would cut deficits by nearly $3 trillion over 10 years. Biden’s plan hinges on raising taxes on wealthy Americans and ending subsidies for the oil and gas industry, unpopular measures among conservative lawmakers.

McCarthy told reporters Thursday he’s optimistic negotiators can reach a deal in time to hold a House vote next week.

“We're not there,” he said at the Capitol. “We haven't agreed to anything yet. But I see the path that we can come to an agreement. And I think we have the structure now, and everybody's working hard.”

Senate Majority Leader Chuck Schumer, D-N.Y., said Thursday he’s not canceling a planned recess for senators that starts Thursday afternoon and ends after Memorial Day, May 29. He, however, warned senators to be ready to return to Washington for a vote on 24 hours’ notice if a deal is reached.

“The negotiations are currently making progress,” Schumer said on the Senate floor. “As Speaker McCarthy has said, he expects the House will vote next week if an agreement is reached, and the Senate would begin consideration after that.”

Some lawmakers on both sides of the aisle have expressed concerns about the state of negotiations, worried that their representatives will give up too much to the other side.

The far-right House Freedom Caucus put out a statement Thursday to call for the Senate to pass the Limit, Save, Grow Act, the bill put forth and passed by the House GOP to raise the debt limit in exchange for steep spending cuts.

"The House Freedom Caucus calls on Speaker McCarthy and Senate Republicans to use every leverage and tool at their disposal" to make sure the bill "is signed into law," the statement reads. "There should be no further discussion until the Senate passes the legislation."

Similarly, progressive House Democrats expressed concerns about what Speaker McCarthy might demand in exchange for raising the debt limit, including raising work requirements for social safety net programs.