The U.S. could risk default by August if Congress doesn't address the debt ceiling, the non-partisan Congressional Budget Office forecast on Wednesday.
"The Treasury has already reached the current debt limit of $36.1 trillion, so it has no room to borrow under its standard operating procedures," according to the CBO report.
The CBO noted its forecast is subject to uncertainty, though, and if borrowing needs exceed its projections the country could run out of money to pay its bills by late May or sometime in June.
"The projected exhaustion date is uncertain because the timing and amount of revenue collections and outlays over the intervening months could differ from C.B.O.'s projections," the budget office said.
The national debt is now approaching $37 trillion. Lawmakers agreed in June 2023 to suspend the $31.4 trillion debt limit until Jan. 1, 2025.
The House added a $4 trillion increase in the debt ceiling as part of a Republican budget plan that sets the stage for extending the individual tax cuts passed in Trump's first term.
But the Senate will have to agree to that increase, and it's unclear at this point whether the Republican-led chamber will do so. GOP leadership in both the House and Senate continue to negotiate on a path forward, with the latest meeting Tuesday at the White House.
Information from the Associated Press was used in this report.
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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