US could default this summer unless $31.4tn debt ceiling is raised, CBO warns

Historic federal debt default could occur before July, cautions non-partisan agency

The Congressional Budget Office on Wednesday said the US treasury department will exhaust its ability to pay all its bills sometime between July and September, unless the current $31.4tn cap on borrowing is raised or suspended.

In a report issued alongside its annual budget outlook, the non-partisan CBO cautioned that a historic federal debt default could occur before July if revenue flowing into the treasury in April – when most Americans typically submit annual income tax filings – lags expectations.