House Minority Leader Kevin McCarthy Kevin Owen McCarthyMcCarthy says there will be a peaceful transition if Biden wins GOP lawmakers distance themselves from Trump comments on transfer of power McCarthy claims protests in Louisville, other cities are 'planned, orchestrated events' MORE (R-Calif.) said Tuesday that Congress should increase the debt limit before lawmakers leave town for the August recess.

“There is a real concern, and I don't think this is a question on any side of the aisle, that when the debt ceiling can hit, that it could hit early September or maybe sooner," he told reporters at a news conference on Capitol Hill. "We should not leave for August without dealing with that.”

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McCarthy said he believes progress has been made in recent days with negotiations between congressional Democrats, Republicans and the White House.

“I do think that we can get this done. And I would say to the Speaker, if we are as close as I believe we are, and we need a day or two longer, we should stay there and make sure we get it done,” he added.

Treasury Secretary Steven Mnuchin Steven Terner MnuchinOn The Money: Anxious Democrats push for vote on COVID-19 aid | Pelosi, Mnuchin ready to restart talks | Weekly jobless claims increase | Senate treads close to shutdown deadline Vulnerable Democrats tell Pelosi COVID-19 compromise 'essential' Pelosi asks panels to draft new COVID-19 relief measure MORE — who has also expressed optimism about the chances of striking a bipartisan deal — warned the government could run out of money in early September in a letter sent to congressional leadership on Friday.

Speaker Nancy Pelosi Nancy PelosiPelosi slams Trump executive order on pre-existing conditions: It 'isn't worth the paper it's signed on' On The Money: Anxious Democrats push for vote on COVID-19 aid | Pelosi, Mnuchin ready to restart talks | Weekly jobless claims increase | Senate treads close to shutdown deadline Trump signs largely symbolic pre-existing conditions order amid lawsuit MORE (D-Calif.) and Mnuchin have been holding talks to discuss raising statutory budget caps alongside an increase in the nation's borrowing limit to avoid a default.

Top Democrats are looking to link the debt ceiling with a budget agreement in hopes it will provide them with more leverage during spending negotiations.

Many Republican lawmakers have said they want to avoid a stand-alone vote on raising the debt ceiling.

Failure to increase the debt limit could roil global markets and threaten recent economic gains.