US could default on its debt between August and early October, analysis finds
by Aris Folley - 06/25/25 9:05 AM ET
The federal government risks defaulting on its debt sometime this summer or early fall without congressional action to address its debt ceiling, a new analysis found.
The Bipartisan Policy Center projected the “X-date” will “most likely occur between August 15 and October 3” if Congress fails to act.
“Congress must address the debt limit ahead of the August recess,” said Margaret Spellings, president and CEO of the Bipartisan Policy Center, in a Wednesday statement. “With so many Americans worried about their own budgets and the state of the economy, Congress can’t afford to inject any additional uncertainty into the mix.”
In its Wednesday projection, the Bipartisan Policy Center cited “stronger-than-expected tax revenue in April,” along with “steady quarterly tax revenues this month and a relatively stable economy,” as key factors in Congress being afforded more time to address the nation’s debt ceiling.
“As of June 18, Treasury had?$384 billion in cash on hand?and?$89 billion in?extraordinary measures — legally permitted accounting maneuvers — remaining to finance government operations,” the think tank said.
“If shortfalls in July and August are larger than expected, there would be a heightened X Date risk in the second half of August or early September, ahead of the September 15 due date for quarterly tax collections,” it added.
Congressional Republicans are looking to address the debt ceiling as part of a broader package to advance key parts of President Trump’s tax agenda, which is estimated to add trillions of dollars to the nation’s deficits in the coming years.
thehill.com
Big, ugly, pork bill is waiting for the deadline to near so they can pass it under threat of technical default of the federal government. |
