U.S. could face default by August if Congress doesn't address debt ceiling, Bessent says

Washington — Treasury Secretary Scott Bessent told congressional leaders Friday that the federal government could be unable to pay its bills as soon as August if Congress doesn't act, urging lawmakers to address the debt limit by mid July.

In a letter to House Speaker Mike Johnson, Bessent said after reviewing April tax filings, "there is reasonable probability that the federal government's cash and extraordinary measure will be exhausted in August," noting that Congress is scheduled to be in recess. 

"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 said.