4 sources·Politics

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.

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  1. US projected to default this summer absent congressional action

    The estimated projection provides Congress with a rough timeline to deal with the debt limit to avoid a default.

    US projected to default this summer absent congressional action

    ABC NewsABC News·25d
    Reliable
    This source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.
    ·
    Center
    This outlet is balanced or reflects centrist views.
  3. US could run short of money to pay its bills by August without a debt limit deal, CBO says

    Since then, the Treasury Department has stopped paying into certain accounts, including a slew of federal worker pension and disability funds, to make up for the shortfall in money.

    US could run short of money to pay its bills by August without a debt limit deal, CBO says

    Associated PressAssociated Press·25d
    Reliable
    This source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.
    ·
    Center
    This outlet is balanced or reflects centrist views.
  1. ABC News
  2. Epoch Times
  3. Associated Press
Updated: Mar 26th, 2025, 6:18 PM ET

Summary

A summary of the key points of this story verified across multiple sources.

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.

Perspectives

Compare opinions on this story from liberal (Left), conservative (Right) or center-leaning news organizations.

  • 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.

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US Risks Default as Congressional Action on Debt Ceiling Looms - Pano News