Washington D.C. - A new report from the Bipartisan Policy Center indicates that the U.S. government faces a potential cash crunch as early as July 2025. Without congressional action to raise or suspend the debt limit, the nation could be unable to meet its financial obligations. This 'X-date,' the point at which the Treasury Department runs out of funds, is estimated to fall between mid-July and early October.
The exact timing depends on various factors, including the amount of taxes collected in April and overall government spending. Failure to address the debt limit could lead to serious economic consequences, including delayed payments to Social Security recipients, government employees, and bondholders. The debt limit is a legal restriction on the total amount of money the U.S. government can borrow to meet its existing legal obligations. Raising or suspending it allows the government to continue paying its bills and avoids a potential default. Economists warn that a default could trigger a global financial crisis and damage the U.S.'s reputation.
US Government May Face Cash Shortage by July
The United States could run out of money to pay its bills as early as July if Congress doesn't act, according to a new analysis. The Bipartisan Policy Center warns that the 'X-date,' when the government can no longer meet its obligations, could arrive sooner than expected. This deadline depends on tax revenues and spending. Raising or suspending the debt limit is crucial to avoid a potential financial crisis.