US Could Face Debt Default as Early as July Without Congressional Action

A study by the Bipartisan Policy Center indicates that the U.S. could default on its $36 trillion debt as early as July and no later than October if Congress does not act to raise the debt ceiling. The four-month window considers factors such as tax revenue, hurricane season impact, tariff revenues, and the strength of the U.S. economy. Spending cuts proposed by Republican lawmakers could also affect when the government reaches the debt ceiling. The Bipartisan Policy Center urges lawmakers to address the debt limit promptly to avoid market volatility and increased borrowing costs. House Republicans are working on a bill to boost border security, loosen energy regulations, and provide a $4.5 trillion tax cut while increasing the debt limit by $4 trillion. Senate Majority Leader John Thune favors a two-bill strategy, while Democrats have traditionally favored suspending the debt ceiling.