U.S. Treasury Secretary Scott Bessent on Friday called on Congress to raise the federal debt ceiling by mid-July to prevent a default that could disrupt global financial markets.
In a letter to congressional leaders, Bessent stressed the need to extend the government’s borrowing authority before August, warning there is a “reasonable probability” the federal government could run out of cash to meet its obligations by then.
“A failure to suspend or increase the debt limit would wreak havoc on our financial system and diminish America’s security and global leadership position,” Bessent wrote.
As of now, the U.S. national debt stands at $36.2 trillion — exceeding the $36.1 trillion limit set by Congress in January, according to the Treasury Department. The department has been relying on temporary financial maneuvers to stave off default, but Bessent cautioned that those measures are only a short-term fix.
Republicans, who control both the House and Senate, are working to pass a broad legislative package that includes major tax cuts and spending increases — along with a debt ceiling hike of at least $4 trillion. Their goal is to push the measure through by July 4.
Congress has a history of dragging debt ceiling negotiations to the brink, a pattern that has repeatedly unsettled financial markets and triggered warnings from major credit rating agencies about the U.S. government's creditworthiness.
