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 (CBO) 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.