Washington — Treasury Secretary Scott Bessent told congressional leaders Friday that the federal government could be unable to pay its bills as soon as August if Congress doesn’t act, urging lawmakers to address the debt limit by mid July.
In a letter to House Speaker Mike Johnson, Bessent said after reviewing April tax filings, “there is reasonable probability that the federal government’s cash and extraordinary measure will be exhausted in August,” noting that Congress is scheduled to be in recess.
“Therefore, I respectfully urge Congress to increase or suspend the debt limit by mid-July, before its scheduled break, to protect the full faith and credit of the United States,” Bessent said.
The so-called “X-date” marks when the government could run out of borrowing power and face an unprecedented default without action from Congress to address the debt limit, which caps how much the Treasury can borrow to pay the government’s obligations. The announcement comes as lawmakers are pursuing a massive legislative package to enact President Trump’s agenda while addressing the debt ceiling.
This is a breaking news story and will be updated.