Current:Home > FinanceThe U.S. could run out of cash to pay its bills between July and September -Visionary Growth Labs
The U.S. could run out of cash to pay its bills between July and September
View
Date:2025-04-17 04:56:38
The U.S. government will run out of cash to pay its bills sometime between July and September unless Congress raises the nation's $31.4 trillion debt ceiling, the nonpartisan Congressional Budget Office projected Wednesday.
But the agency said the timing remained uncertain, and the government could find itself unable to meet its debt obligations even before July should it face a shortfall in income tax receipts.
The U.S. government must borrow money to pay off its debt, and Congress would need to raise the current debt ceiling to avoid a potentially devastating debt default. But Republicans have said they will not agree to do so unless the government also cuts spending.
The CBO estimate came a day after U.S. Treasury Secretary Janet Yellen warned again that "a default on our debt would produce an economic and financial catastrophe."
Speaking to a National Association of Counties conference, Yellen said a federal default would cost jobs and boost the cost of mortgages and other loans. "On top of that, it is unlikely that the federal government would be able to issue payments to millions of Americans, including our military families and seniors who rely on Social Security," she added.
"Congress must vote to raise or suspend the debt limit," Yellen said. "It should do so without conditions. And it should not wait until the last minute. I believe it is a basic responsibility of our nation's leaders to get this done."
Since Jan. 19, the U.S. Treasury has been taking what it calls "extraordinary measures," temporarily moving money around, to prevent the government from defaulting on its debts. But the Treasury said it expected those measures could only last until early June.
After meeting with President Biden at the White House on Feb. 1, Republican House Speaker Kevin McCarthy said he hoped that he and the president could reconcile their differences "long before the deadline" to raise the ceiling. But McCarthy said he would not agree to a "clean" bill that would only raise the debt ceiling without spending cuts attached.
The ceiling was last raised by $2.5 trillion in December 2021.
veryGood! (2939)
Related
- San Francisco names street for Associated Press photographer who captured the iconic Iwo Jima photo
- Jackie Miller James' Sister Shares Update After Influencer's Aneurysm Rupture
- Shannen Doherty Shares Her Cancer Has Spread to Her Brain
- BMX Rider Pat Casey Dead at 29 After Accident at Motocross Park
- Backstage at New York's Jingle Ball with Jimmy Fallon, 'Queer Eye' and Meghan Trainor
- New York Assembly Approves Climate Bill That Would Cut Emissions to Zero
- Mom influencer Katie Sorensen sentenced to jail for falsely claiming couple tried to kidnap her kids at a crafts store
- The US Wants the EU to Delay Imposing Trade Penalties on Carbon-Intensive Imports, But Is Considering Imposing Its Own
- The Grammy nominee you need to hear: Esperanza Spalding
- Heather Rae El Moussa Claps Back at Critics Accusing Her of Favoring Son Tristan Over Stepkids
Ranking
- Are Instagram, Facebook and WhatsApp down? Meta says most issues resolved after outages
- Migrant workers said to be leaving Florida over new immigration law
- New Climate Warnings in Old Permafrost: ‘It’s a Little Scary Because it’s Happening Under Our Feet.’
- Bling Empire's Kelly Mi Li Honors Irreplaceable Treasure Anna Shay After Death
- Intel's stock did something it hasn't done since 2022
- Methodology for Mapping the Cities With the Unhealthiest Air
- Alabama Town That Fought Coal Ash Landfill Wins Settlement
- China’s Dramatic Solar Shift Could Take Sting Out of Trump’s Panel Tariffs
Recommendation
Meet first time Grammy nominee Charley Crockett
A Tale of Two Leaks: Fixed in California, Ignored in Alabama
Anxiety Mounts Abroad About Climate Leadership and the Volatile U.S. Election
Louisville’s Super-Polluting Chemical Plant Emits Not One, But Two Potent Greenhouse Gases
Woman dies after Singapore family of 3 gets into accident in Taiwan
Matty Healy Sends Message to Supporters After Taylor Swift Breakup
ChatGPT maker OpenAI sued for allegedly using stolen private information
New Climate Warnings in Old Permafrost: ‘It’s a Little Scary Because it’s Happening Under Our Feet.’