Treasury Secretary Scott Bessent: U.S. will hit debt limit in August
WASHINGTON – Treasury Secretary Scott Bessent urged congressional leadership to raise the debt ceiling by mid-July, in a letter sent May 9 and viewed by Paste BN. Otherwise, the federal government will hit the current debt ceiling sometime in August, Bessent wrote.
Bessent told House Speaker Mike Johnson that it isn't possible to predict exactly when room under teh current cap will run out, but that it's clear it will happen while Congress gone during their summer recess. Lawmakers leave Washington at the end of July and return after Labor Day.
"Therefore, I respectfully urge Congress to increase or suspend debt limit by mid-July, before its scheduled break, to protect the full faith and credit of the United States," Bessent wrote.
The letter sets a deadline for Republicans in both houses of Congress to pass their massive bill to enact President Donald Trump's agenda.
GOP Lawmakers are hashing out the details of what will be in the sweeping package, which is expected to boost funding for border security and defense while cutting taxes and possibly cutting social programs such as Medicaid.
They had hoped to pass it by July 4, though that is an ambitious timeline given the many competing interests that need to be reconciled before lawmakers can move forward. Bessent's letter indicates lawmakers can take four more weeks to finish the package, but no longer.
The package will also include a $4 trillion to $5 trillion increase in the debt ceiling. Dozens of Republican members have never voted to raise the debt ceiling, but have pledged to do so this time in order to avoid negotiating with Democrats. If the debt ceiling increase isn't part of the budget, which can be passed with a simple majority, it would be subject to a 60-vote threshold in the Senate, giving Democrats leverage.
During an appearance before Congress on May 6, Bessent told lawmakers that the U.S. government will "never default" and that they will raise the debt ceiling.