06/12/2025

CBO Pushes Back Estimate on Debt Ceiling Deadline

Lawmakers have a bit more runway to avoid a default

The Congressional Budget Office (CBO) has pushed back its estimate for when the U.S. will hit the debt ceiling, giving lawmakers a bit more runway to avoid a default.

In a new report this week, the CBO revised its so-called "X-date" window — the projected period when the Treasury would run out of cash and borrowing authority — to begin in mid-August and stretch through the end of September. That's a shift from its earlier forecast in March, which had suggested the government could exhaust its borrowing tools as early as August 1.

While the update eases immediate pressure, the clock is still ticking.

It's unclear how the revised timeline will influence House and Senate Republicans who are aiming to pass a reconciliation package by the July Fourth recess that would include a major debt limit increase — reportedly at least $4 trillion.

Despite the uncertainty, Treasury Secretary Scott Bessent sought to reassure markets and the public.

"The United States will never default on its debt," Bessent said in a recent interview. "We're on the warning track — but we'll never hit the wall."

This article was provided to OSAP by ASAE's Power of Associations and Inroads.