Particle.news

Download on the App Store

U.S. Treasury Warns of Default Risk as Debt Ceiling Deadline Nears

Treasury Secretary Scott Bessent urges Congress to act by mid-July to avoid exhausting cash reserves by August, risking severe economic consequences.

Le Capitole, à Washington.
Image
Image

Overview

  • The U.S. government risks running out of cash by August 2025 unless Congress raises or suspends the debt ceiling.
  • Treasury Secretary Scott Bessent has called on the Republican-controlled Congress to reach an agreement before its July 24 recess.
  • Extraordinary measures implemented since January have temporarily allowed the government to meet its obligations but are nearing exhaustion.
  • Failure to act could trigger the first-ever U.S. default, disrupting federal services, financial markets, and international confidence in U.S. creditworthiness.
  • With U.S. public debt at $36.22 trillion, annual interest payments now exceed defense spending, underscoring the economic stakes of inaction.