US is projected for the default this summer there is no Congress

The Congress Budget Office warned on Wednesday that the government could run out of money to pay their bills as early as August or September if parliamentary members failed to overcome the debt limit.

“The government’s ability to borrow using extraordinary steps may run out in August or September 2025,” CBO reports are non -partisan predicted.

CBO added that the exactly projected X date is unclear because of the “time and amount of income and expenditure collection during intervention months can be different from the CBO projection.” The estimated projection gives a rough timeline congress to handle debt limits to avoid default.

“If the government’s loan needs are significantly greater than the CBO project, the Ministry of Finance’s resources can be exhausted at the end of May or around June, before payment of tax due in mid -June is accepted or before additional extraordinary action is available on 30 June,” he said in the report.

If parliamentary members do not raise or suspend debt limits before all extraordinary actions run out, the government can fail to pay on its debt – something that only happens a few times in US history, although it has never been in connection with the legal debt limit.

“The treasury has reached the current debt limit of $ 36.1 trillion, so it does not have space to borrow under standard operating procedures,” according to the CBO report.

Minister of Finance Scott Besent told the leaders of the congress that his department would give an estimate of how long the extraordinary steps would last for the first half of May – after the tax season.

“I respectfully urged the congress to act immediately to protect the full confidence and credit of the United States,” Besent wrote in March 14 to the congress.

The problem has been in the list of congress tasks since last winter, when Minister of Policy Janet Yellen warned that the debt limit would be fulfilled around President Donald Trump’s inauguration on January 20.

While Trump has asked the House and Republican senate to eliminate the debt limit, members of the congress are expected to include the provisions in their budget reconciliation package to suspend the debt limit until the end of Trump’s government, although a plan is not completed, including whether to compensate for the increase by cutting expenses and reforms.