Treasury Urges Debt Ceiling Action to Avert Default

Treasury Secretary Scott Bessent has warned Congress in a letter that the United States could run out of money to pay its bills as early as August unless lawmakers raise or suspend the debt ceiling. He urged action by mid-July to avoid exhausting federal cash and extraordinary measures, citing a 'reasonable probability' that these resources will run out by August. Bessent emphasized the risk of severe consequences for financial markets, businesses, and taxpayers if Congress delays action. The Republican-controlled Congress is trying to resolve the issue through a party-line bill, but internal party disagreements and narrow majorities could delay passage, potentially requiring Democratic involvement. Analysts and Bessent warned that inaction may trigger market volatility, loss of confidence, and default, undermining U.S. security and global leadership. The current standoff recalls previous debt ceiling crises, highlighting the need for urgent Congressional compromise.