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.