The Congress Budget Office warned Wednesday that the Government could run out of money to pay their bills as soon as August or September if legislators do not address the debt limit.
“The government’s ability to borrow using extraordinary measures will probably be exhausted in August or September 2025,” reports the non -partisan CBO report provided.
The CBO added that a precise projected X date is not clear because “the moment and the amount of income collection and disbursements during the intermediate months could differ from the projections of the CBO.” The estimated projection provides Congress for an approximate timeline to treat the debt limit to avoid non -compliance.
“If government borrowing needs are significantly higher than CBO projects, treasure resources could be exhausted at the end of May or at some time in June, before tax payments are received in mid -June or before additional extraordinary measures are available on June 30,” he said in the report.
The Secretary of the Treasury, Scott Besent, attends an Economic Club of New York event in New York City, on March 6, 2025.
Jeenah Moon/Reuters
If legislators do not increase or suspend the debt limit before all extraordinary measures are exhausted, the government could breach its debt, something that has only happened a few times in the history of the United States, although never with respect to the legal debt limit.
“The treasure has already reached the current debt limit of $ 36.1 billion, so it has no room to borrow under its standard operational procedures,” according to the CBO report.
The secretary of the Treasury, Scott Besent, told Congress leaders that his department would provide an estimate of how long the extraordinary measures will last during the first half of May, after the tax season.
“I respect the congress respectfully to act immediately to protect all the faith and credit of the United States,” Besent wrote in a letter of March 14 to Congress.
The problem has been on the list of pending tasks of the Congress since last winter, when the secretary of the then Treasury, Janet Yellen, warned that the debt limit would meet the inauguration of President Donald Trump, which was on January 20.
Although Trump has asked the House and Senate Republicans to abolish the debt limit, Congress members are expected to include a provision in their budget reconciliation package to suspend the debt limit until the end of the Trump administration, although a plan is not ended, included if compensating any increase with expenses and reform cuts.
