U.S. could face default by August if debt ceiling not addressed, Bessent says

Sen. James Lankford connected Trump fund measure

Trump fund measure won't beryllium finished by July 4, Sen. James Lankford says 07:01

Washington — Treasury Secretary Scott Bessent told legislature leaders Friday that the national authorities could beryllium incapable to wage its bills as soon arsenic August if Congress doesn't act, urging lawmakers to code the indebtedness bounds by mid July.

In a missive to House Speaker Mike Johnson, Bessent said aft reviewing April taxation filings, "there is tenable probability that the national government's currency and bonzer measurement volition beryllium exhausted successful August," noting that Congress is scheduled to beryllium successful recess. 

"Therefore, I respectfully impulse Congress to summation oregon suspend the indebtedness bounds by mid-July, earlier its scheduled break, to support the afloat religion and recognition of the United States," Bessent said.

The alleged "X-date" marks erstwhile the authorities could tally retired of borrowing powerfulness and look an unprecedented default without enactment from Congress to code the indebtedness limit, which caps however overmuch the Treasury tin get to wage the government's obligations. The announcement comes arsenic lawmakers are pursuing a monolithic legislative package to enact President Trump's docket portion addressing the indebtedness ceiling. 

This is simply a breaking quality communicative and volition beryllium updated. 

In:
• Scott Bessent
• United States Department of the Treasury