Treasury Secretary Scott Bessent warned congressional leaders on Friday that the United States could exhaust its borrowing authority by August, urging them to raise or suspend the debt ceiling before lawmakers depart for their summer recess at the end of July.
In a May 9 letter to House Speaker Mike Johnson and other top legislators, Bessent wrote: "There is a reasonable probability that the federal government's cash and extraordinary measures will be exhausted in August while Congress is scheduled to be in recess." He added: "Therefore, I respectfully urge Congress to increase or suspend the debt limit by mid-July, before its scheduled break, to protect the full faith and credit of the United States."
Bessent cited "significant uncertainty" regarding the precise timeline, but the warning adds pressure on Republicans, who control both chambers of Congress, to advance a sweeping legislative package that includes a $4 trillion to $5 trillion debt ceiling increase.
The GOP's budget proposal aims to fund President Donald Trump's agenda, including increased spending on border security and defense, alongside tax cuts and potential reductions in entitlement programs such as Medicaid. The party has struggled to unify around key elements of the package, making a July 4 passage unlikely.
Lawmakers had hoped to pass the package using the budget reconciliation process, which requires only a simple majority and avoids a filibuster in the Senate. Without including the debt ceiling measure in that package, it would need 60 votes in the Senate-giving Democrats significant leverage.
Dozens of Republican lawmakers who previously opposed debt ceiling hikes have indicated they are willing to support the increase this time to prevent engaging in negotiations with Democrats. Still, if consensus within the GOP remains elusive, party leaders may be forced to pursue a standalone debt ceiling bill with bipartisan support.
"A failure to suspend or increase the debt limit would wreak havoc on our financial system and diminish America's security and global leadership position," Bessent wrote.
