CBO Warns U.S. Will Default This Summer Unless Congress Raises Debt Limit

The Congressional Budget Office (CBO) released a report on Tuesday warning that the U.S. government could default on its debt between July and September if Congress does not raise the debt limit.

The report comes as the national debt is nearing its statutory limit. The CBO estimates that the U.S. will add $19 trillion in new debt over the next 10 years if the debt limit is not raised.

The CBO report said that the debt limit will need to be raised by the end of July in order to avoid a default. A default would have serious consequences for the U.S. economy, including higher interest rates, a weakened dollar, and potential credit rating downgrades.

The report also noted that the U.S. government has already taken steps to manage the debt limit, such as suspending investments in some government trust funds. However, these measures are only temporary and will not prevent a default if the debt limit is not raised.

Vice President Mike Pence is currently in Iowa to discuss the debt limit issue with lawmakers. Meanwhile, Congress is looking for a way to raise the debt limit without triggering a political battle.

The debt limit issue has become increasingly urgent as the July deadline approaches. It remains to be seen if Congress will be able to reach a deal in time to avoid a default.