US Risks Default as Congressional Action on Debt Ceiling Looms
The CBO warns that without congressional action, the US risks exhausting its borrowing capacity by late summer, possibly leading to a federal default.
Overview
The Congressional Budget Office (CBO) has issued a warning that the United States could run out of money to pay its bills by late summer 2025 unless Congress addresses the debt limit. The Treasury's extraordinary measures to manage finances may be exhausted by then, leading to potential default risks. This situation arises from political stalemates over raising or suspending the current $36.1 trillion debt ceiling. As discussions continue, both parties face pressure to reach an agreement to avoid financial disaster.
Content generated by AI—learn more or report issue.
Get both sides in 5 minutes with our daily newsletter.
Analysis
- The CBO warns that the U.S. could run out of money and risk default as early as August or September unless Congress acts to modify the debt limit.
- Treasury Secretary Scott Bessent emphasizes the need for prompt congressional action to maintain the country's financial integrity and avert a default.
- Lawmakers have a unique opportunity to integrate negotiations about the debt ceiling with broader fiscal responsibility measures.
Articles (4)
Center (3)
No highlight available for this article.
ABC News·3M·No highlight available for this article.
ABC News·3M·No highlight available for this article.
Associated Press·3M·FAQ
No FAQs available for this story.
History
- This story does not have any previous versions.