The United States can run out of money to continue paying its bills by mid -July if Congress does not take a measure to raise or suspend the country’s debt, according to Monday’s analysis by the party policy center.
This deadline, known as “X-Date”-at the moment when the United States cannot meet its financial obligations and may fail to pay it on its debts-a financial teacher among the most watched in Washington and Wall Street.
History is subject to great uncertainty. It depends on the estimates of the amount of oscillation that the cabinet must use to use accounting maneuvers – known as “exceptional measures” – to continue paying government bills by transferring money around them. The Party Policy Center, a research reservoir, presented estimates indicating that X-DTITE may come late from the beginning of October.
It is possible that the efforts made to address the border of Congress and the Trump administration later this year as Republicans are racing to generate trillion dollars from tax cuts.
The debt limit is the maximum amount of the total amount of money allowed by the United States to borrow to finance the government and meet its financial obligations.
Since the federal government runs a budget deficit – which means that it spends more than it brings through taxes and other revenues – it must borrow huge sums of money to pay their bills. These obligations include financing social safety network programs, salaries of members of the armed forces and paying investors who bought US government debts in exchange for interest payments.
After a long fight, legislators in June 2023 agreed to suspend the debt limit of $ 31.4 trillion until January 1, 2025.
The national debt is now approaching 37 trillion dollars. Republicans cut federal positions in government agencies and expressed their commitment to reduce waste spending, but legislators showed little appetite to cut the social safety network programs, which are the biggest motivation for the growing debts.
“Policy makers must adhere to the responsible budget, which begins to avoid the limits of accuracy within the limits of debt and its effects on our economy,” said Margaret Haja, head of the Party Policy Center in a statement.
The analysis said that spending on disaster relief, Tax tax 2024 groups Additional government revenues may affect Mr. Trump’s tariff. Savings can extend from the discounts recommended by the new government efficiency to the deadline.
I told Janet to. Yallen, Minister of the Treasury during the era of President Joseph R. Biden Junior, Congress in mid -January The Treasury will need to start using “extraordinary measures” on January 21 to allow the United States to continue to meet its financial obligations.
These measures are mainly accounting maneuvers that can prevent the government from violating the debt limit. The suspension of certain types of investments can include savings plans for government workers.
President Trump said last year, before taking office, he believed that the debt limit was a “trap” by the Democrats and urged legislators to raise the maximum borrowing or completely cancel it.
Treasury Secretary Scott Bessin expressed doubts about the cancellation of the debt limit during the assertion session in January. However, he said that he would study the idea and work with the Democrats, many of whom said that the debt limit creates unnecessary risks, on the changes in the maximum. Mr. Pesin Bloomberg News told Discussing the matter with adult debt holders.
In a message to Congress this monthMr. Pesin said he continues to publish the measures developed by Mrs. Yelin. This stopping temporarily included some investments in the Civil Service Fund, the retirement deficit and the health advantages fund for retirees for postal service.
The Treasury Secretary said that it is expected to submit an update in the month of May in the period in which its money will continue and indicate “uncertainty that cannot be avoided” surrounding such expectations.
“I respect Congress with respect immediately to act immediately to protect the full and credit faith of the United States,” said Mr. Bessin.
Republicans in the House of Representatives The budget plan was unveiled last month This would raise the debt limit by $ 4 trillion and agree to more than $ 4 trillion in tax cuts.
It is not clear that the number of Republicans in the Senate who will support such a procedure to raise the borrowing ceiling or whether they will require the support of some Democrats.