Debt Ceiling Deadline Looms as U.S. Risks Default by Mid-July

Congress faces mounting pressure to act as Republicans propose a $4 trillion tax cut tied to the borrowing limit, while Democrats weigh their response.

The Bipartisan Policy Center projects the U.S. could default on its debt between mid-July and early October 2025 without congressional action.
The Treasury Department is using extraordinary measures to delay default, but these measures are expected to run out by October at the latest.
Republicans are pushing a $4 trillion debt ceiling increase tied to extending Trump-era tax cuts, which could add trillions to the deficit over the next decade.
Democrats are divided on whether to negotiate or use the crisis to block tax cuts for the wealthy, with some advocating for leveraging their position for concessions.
Failure to address the debt ceiling could lead to severe economic consequences, including market volatility, higher borrowing costs, and diminished confidence in U.S. fiscal stability.