The United States will default on its debt sometime this summer if Congress doesn't act and raise the $31.4 trillion debt limit, the Congressional Budget Office projected Wednesday.
"We project that, if the debt limit remains unchanged, the government’s ability to borrow using extraordinary measures will be exhausted between July and September 2023," CBO director Phillip Swagel said in a statement Wednesday.
A report from the CBO released Wednesday further stated, "Currently, the statutory limit on the issuance of new federal debt is set at $31.4 trillion. On January 19, 2023, debt reached that limit, and the Treasury announced a ‘debt issuance suspension period,’ during which, under current law, it can take well-established 'extraordinary measures' to borrow additional funds without breaching the debt ceiling."
"CBO estimates that under its baseline budget projections, the Treasury would exhaust those measures and run out of cash sometime between July and September of this year. The Deficit Control Act requires CBO to project spending," the office said.
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